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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

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Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

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Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

  • Writer's pictureAndrew Young
    • Jun 15, 2023
    • 2 min read

ESG INVESTING – REASONS FOR STEERING AWAY


ESG

I have received numerous questions from clients recently asking if we were doing any ESG investing for them. Most of them request that they not be invested in ESG funds. Clients often want to be invested in the four categories that Ramsey Solutions’ discusses, and we can do that well. Here are some reasons why clients are asking about ESG and maybe want to avoid those funds.


As the world becomes increasingly focused on sustainability and social responsibility, the popularity of Environmental, Social, and Governance (ESG) investing has grown. ESG investing is an investment strategy that takes into account a company’s environmental, social, and governance factors when making investment decisions. While this approach may seem like a responsible and ethical way to invest, there are valid reasons to be skeptical of ESG investing.


Too much subjectivity

First and foremost, ESG investing can be highly subjective. There is no standardized way of measuring a company’s ESG performance, and the criteria used by ESG rating agencies can vary widely. What one investor considers an acceptable environmental or social responsibility level may differ significantly from another investor’s perspective. As a result, ESG investors may be making investment decisions based on incomplete or inaccurate information.


Limit investing opportunities

Furthermore, ESG investing can limit investment opportunities and potentially result in lower returns. By excluding companies that do not meet specific ESG criteria, ESG investors are reducing the number of available investment options. This can limit diversification and potentially lead to lower returns over the long term. Additionally, some companies excluded from ESG investment portfolios may be highly profitable, making them attractive investment opportunities.


Higher Fees

Another concern with ESG investing is that it can lead to higher fees for investors. Many ESG funds charge higher fees than traditional funds, requiring more research and analysis to determine a company’s ESG performance. These higher fees can eat into investment returns, making ESG investing less attractive for investors prioritizing maximizing returns.


Greenwashing

Finally, ESG investing can be subject to “greenwashing.” This is the practice of making misleading or unsubstantiated claims about a company’s environmental or social responsibility. Companies may tout their ESG credentials to attract ESG investors, even if their actions do not match their claims. ESG investors may be more likely to fall prey to greenwashing because they prioritize environmental and social responsibility, potentially leading to investment decisions based on inaccurate information.


The right approach

In conclusion, while ESG investing may seem like a responsible and ethical investment strategy, there are valid reasons to be skeptical of this approach. ESG investing can be highly subjective, limit investment opportunities, result in higher fees, and be subject to greenwashing. Investors should carefully consider their investment goals and priorities before deciding whether ESG investing is right for them.



If you have questions on this type of investment strategy or want to speak to one of our financial advisors about investing, contact one of our eleven advisors to help answer your questions today.

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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

​

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

​

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

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