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Vanguard ESG fund adds casino, oil, guns, and prison due to FTSE error

It seems to have been a mistake by its index provider FTSE, but this tweet by Eric Balchunas of Bloomberg shows five stocks Vanguard‘s ESG fund that many professionals would not likely rank high on ESG measures.

While I believe ESG and ethical factors in investing are far more subjective than quantitative factors like value (I have argued tobacco can actually score very high on ESG), casinos, guns, and oil/defense are among three sectors I have most seen from large “McESG” funds. This is yet another example of why I don’t believe ESG will work well under the brand of a large, impersonal institution that tries to please everyone (as much as I love Vanguard), but rather presents opportunities to specialists in certain ESG values and factors.

Have a great week!

Vanguard ESG fund adds casino
Vanguard ESG fund adds casino

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