Invesco ESG NASDAQ Next Gen 100 ETF

QQJG

Market cap $6.4M

The fanfare and hoopla surrounding environmental, social and governance (ESG) investing seen several years ago has largely waned, but that doesn't mean ESG and sustainable investing principles are no longer prioritized by advisors and investors. Actually, those investment styles remain priorities.

Investing involves risk. That's just the lay of the land.

Just a few short years ago, ESG investing was front-and-center in the asset allocation conversation. Right or wrong, that attention drew political scrutiny in the U.S. That prompted temporary repudiation of ESG and sustainable investing styles.

Much of the vitriol aimed at environmental, social and governance (ESG) investing appears to have died down — a positive for multiple reasons, not the least of which is that the party in power in Washington, DC was the one that led the anti-ESG crusade in recent years.

For the time being, it appears the politicians who pushed anti-environmental, social, and governance views over the past several years have moved on. That could be a plus for ESG as an investing style.

In a perfect world, U.S. presidents wouldn't affect how advisors and investors select ETFs. But that perfection is hard to find.

It's often said that voters have short attention spans, and the same is arguably true of politicians. The confluence of both factors could prove to be a source of encouragement for proponents of ESG investing.

Environmental, social and governance (ESG) and sustainable investing have subjected to much criticism and political controversy. Despite those headwinds, these asset allocation styles remain popular with many market participants.

These days, there's plenty of talk about disinformation and misinformation. Some of it may well be applicable to environmental, social, and governance (ESG) investing, which has taken a beating in the court of public opinion.

Harsh, often politically driven criticism of environmental, social, and governance (ESG) investing may have overstepped its bounds and likely won't have much long-term impact. That's the view of Chuka Umunna, JPMorgan's global head of sustainable solutions, who made comments to that effect at the Reuters Energy Transition conference in London.