RT Journal Article
T1 Does ESG Investing Pay off? Comparing the Performance of ESG and Traditional ETFs Across European and US Markets
A1 Tenorio Salgueiro, Sandra
A1 Martínez Salgueiro, Andrea
A1 Lado Sestayo, Rubén
A1 Vivel Búa, Milagros
K1 Copulas
K1 Environmental, social, and governance (ESG)
K1 Exchange-traded funds (ETFs)
K1 Portfolio analysis
K1 Socially responsible investment (SRI)
AB Investors have long recognized the importance of firms in promoting sustainability, leading to the rise of socially responsible investment (SRI). Specifically, there is a growing preference for exchange-traded funds (ETFs) that prioritize environmental, social, and governance (ESG) principles. However, the performance of ESG ETFs has not been extensively studied, and existing findings remain inconclusive. This research addresses this gap by comparing ESG ETFs with traditional ETFs in Europe and the United States, analyzing the period 2014–2024, along with subperiods of pre-crisis (2014–2019) and crisis (2020–2024). The results show that ESG ETFs can offer diversification benefits, hedging capabilities, and safe-haven properties. However, performance outcomes vary across regions, investment strategies, and market conditions. In Europe, ESG ETFs improve risk-adjusted performance in utility-maximizing strategies. In the United States, ESG ETFs also enhance returns adjusted for risk in utility-maximizing portfolios during periods of market stress, though this advantage is less evident in more stable market conditions.
PB Wiley
SN 0964-4733
YR 2025
FD 2025
LK https://hdl.handle.net/10347/44439
UL https://hdl.handle.net/10347/44439
LA eng
NO Tenorio‐Salgueiro, S., Martínez‐Salgueiro, A., Lado‐Sestayo, R., & Vivel‐Búa, M. (2025). Does ESG Investing Pay off? Comparing the Performance of ESG and Traditional ETFs Across European and US Markets. Business Strategy and the Environment.https://doi.org/10.1002/BSE.70309
NO This work was supported by Agencia Estatal de Investigación (PID2021-124336OB-I00), Universidade de Vigo (00VI 131H 641.02), and Consellería de Cultura, Educación y Universidad and Vicepresidencia segunda y Consellería de Economía, Empresa e Innovación (ED431C 2020/18 and ED431C 2024/08).
DS Minerva
RD 28 abr 2026