ESG Investing Without the Fairy Dust

Most ESG funds are just expensive large-cap funds with marketing. A few aren't. Here's how to tell.

Read the holdings. If the top ten look identical to the S&P 500 minus a couple of oil companies, you're paying 30 extra basis points for very little.

Real ESG exposure means tilting toward different companies, accepting tracking error, and probably accepting lower diversification. That's a defensible choice if you want it. It's not free.