Economics at your fingertips  

Do Socially Conscious ETFs Match Their Active Counterparts?

Ryan Cultice and Steven Dolvin

International Business Research, 2020, vol. 13, issue 4, 100

Abstract: Over the past decade, Socially Responsible Investing (SRI) has grown at a rapid pace and, by some estimates, now represents a quarter of the $48 trillion in assets under professional management in the United States. At the same time, investors have broadly shifted from active to passive investing strategies. While there is significant research in each of these respective areas, we believe that we are the first to examine whether a socially conscious investor can employ a passive approach or if the constrained nature of SRI necessitates active management. As such, we examine the performance of socially conscious ETFs versus a matched sample of actively managed SRI mutual funds. We find the performance, as a whole, to be insignificantly different between the two groups, suggesting that the benefits of active management in this construct effectively offset the cost advantage of passive ETFs.

JEL-codes: R00 Z0 (search for similar items in EconPapers)
Date: 2020
References: View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in International Business Research from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().

Page updated 2020-04-18
Handle: RePEc:ibn:ibrjnl:v:13:y:2020:i:4:p:100