The S&P’s energy sector surged more than 50% last year – so how were green funds able to keep up with the stock market?

The S&P’s energy sector surged more than 50% last year – so how were green funds able to keep up with the stock market?

Fossil-fuel energy stocks roared back in 2021. That could have spelled doom for the performance of sustainable investment exchange-traded funds — but about half of the largest ESG offerings did better than versus the S&P 500. But like with many funds, stock selection, rather than sector bias, is the main reason, said Todd Rosenbluth, director of ETF research at CFRA. Many of ESG ETFs held some of the biggest technology names that also helped to power the broad indexes, such as Apple AAPL, Amazon AMZN, Tesla TSLA, Nvidia NVDA and Microsoft MSFT. Weightings also mattered; some were overweight a few key names versus the broader index SPX. The technology sector climbed about 35% in 2021, and it’s the largest sector in the S&P 500 at 29%. Energy, meanwhile, is among …
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