This interview originally appeared on the Wall Street Journal on May 18, 2021.
A small group of conservative money managers is trying to catch up to investment funds that for years have catered to those concerned about climate change, diversity or animal rights.
The nascent effort, which has attracted some prominent names, seeks to woo investors disgruntled by increased involvement by some companies in political and social issues.
Whether conservatives will move money from more traditional investments to funds that hold shares in companies that are either neutral or lean conservative on political questions remains to be seen.
“It shows that there are people for whom pretty much everything these days is political—on both sides,” said David Hopkins, a Boston College professor who studies the nation’s political divisions.
So-called ESG—environmental, social and governance—funds are popular with progressives who hope to use their dollars to influence companies as well as with others who see growth potential from companies focused on industries such as renewable energy.
Such investments have ballooned in size in recent years. Morningstar estimates sustainable portfolios in the U.S. last year took in nearly a quarter of all new money across mutual funds and exchange-traded funds, or ETFs.
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