What ESG Investing Is, And Why It Matters

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

What are the big, important issues that matter the most to you? Do you often think about these things when looking into investment possibilities and decisions? 

ESG is investing with a cause — it stands for Environmental, Social, and Corporate Governance. ESG investing is all about taking a good look at the underlying outlook, goals, and impact of a company in order to make a more informed or personally preferable decision about it and whether or not to invest in it. 

The local, national, and global community is often deeply affected by the ways in which organizations do business, and ESG investing advocates attempt to provide a way for investors to understand the companies they invest in on a deeper level. ESG investing aims to align different stakeholders and groups together toward an outlook focused not only on the financial bottom line but also on larger goals for good.

Supporting A Cause With Shares

A variety of initiatives and options exist for many different investment strategies and mindsets.  Sustainability, recycling, environmental considerations, and green energy commitments can be prioritized. Workplace culture, wage rates, hiring practices, diversity initiatives, and human capital are parts of many ESG strategies. There are many different ways for companies to show their mission toward their own ecosystem and the one around them that provide causes and ways for investors to get more involved and feel good about their investing decisions. 

Value Investing Meets Values Investing

ESG investing has become more and more popular over the years, and in the market, there has been a rise in specific causes tied to ETFs and other investment funds that provide a way for both cause-oriented investing along with diversification and sound financial analysis. 

One of these ETFs is the VictoryShares Top Veteran Employers ETF VTRN. VTRN is an exchange-traded fund that is focused on a collection of companies that are considered to be among the best in their treatment and support of veterans of the United States military. Companies who are selected for inclusion in this ETF support U.S. veterans through either veteran job recruitment & hiring, veteran employee development, and retention, or military spouse and family support. 

An ETF designed for investors looking to align their financial goals with social impact specifically for the men and women who served in the armed forces, VTRN tracks the Veterans Select Index, an index that measures the performance of companies that support U.S. veterans primarily through employment. Companies such as Southwest Airlines Co LUV, General Electric Company GE, and General Motors Company GM make up some of the members of the index. 

Investors looking to infuse their portfolio with a cause that is near and dear to them can look into ESG investing further to diversify not only their assets but also their impact.

ABOUT VICTORY CAPITAL

Victory Capital is a diversified global asset management firm with $154.3 billion in assets under management as of March 31, 2021. The Company operates a next-generation business model combining boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform.

Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. With 10 autonomous Investment Franchises and a Solutions Platform, Victory Capital offers a wide array of investment styles and investment vehicles including, actively managed mutual funds, separately managed accounts, active ETFs, multi-asset class strategies, custom-designed solutions, and a 529 College Savings Plan.

Victory Capital is fueled by its passion for giving back to current and former service members and their families by helping them establish a plan for financial success. Impacting the lives and futures of military families is an incredible responsibility, one Victory Capital does not take lightly. They provide access to a wide variety of investment vehicles, practical information, expert insights, and unique tools to help members create and implement a plan for a comfortable financial future.

Carefully consider a fund's investment objectives, risks, charges and expenses before investing. To obtain a prospectus or summary prospectus containing this and other important information, visit www.vcm.com/prospectus. Read it carefully before investing.

All investing involves risk, including the potential loss of principal. The Fund has the same risks as the underlying securities traded on the exchange throughout the day. Redemptions are limited, and commissions are often charged on each trade. ETFs may trade at a premium or discount to their net asset value. The Fund invests in securities included in, or representative of securities included in, the Index, regardless of their investment merits. The performance of the Fund may diverge from that of the Index. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Investments concentrated in an industry or group of industries may face more risks and exhibit higher volatility than investments that are more broadly diversified over industries or sectors.

Investments in aerospace and defense companies may be adversely affected by changes in governmental policies and spending as well as adverse economic conditions and industry consolidation. The value of your investment is also subject to geopolitical risks such as wars, terrorism, environmental disasters, and public health crises; the risk of technology malfunctions or disruptions; and the responses to such events by governments and/or individual companies. Fund holdings and sector allocations are subject to change, may differ from the Index, and should not be considered investment advice.

The Veterans Select Index℠, designed by VETS Indexes LLC, measures the performance of publicly traded companies that support U.S. military veterans. Net expense ratio reflects the contractual waiver and/or reimbursement of management fees through October 31, 2021.

Nasdaq is a registered trademark of Nasdaq, Inc. and its affiliates (together, “Nasdaq”) and is licensed for use by Victory Capital. The product(s) are not issued, endorsed, sold, or promoted by Nasdaq. Nasdaq makes no warranties as to the legality or suitability of, and bears no liability for, the product(s).

Distributed by Foreside Fund Services, LLC (Foreside). Victory Capital is not affiliated with Foreside.

©2021 Victory Capital Management Inc