ESG Investing
InvestingGlossary term
Definition
An investment approach that considers Environmental, Social, and Governance factors alongside financial returns. ESG investors screen companies based on criteria like carbon emissions, labor practices, and board diversity. Growing rapidly as investors seek values-aligned portfolios.
Related terms
- Mutual FundAn investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities, professionally managed by a fund manager.
- PortfolioA collection of financial investments like stocks, bonds, mutual funds, ETFs, and other assets. Diversifying your portfolio helps manage risk.
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