It is still not easy being green for exchange-traded funds

An earlier foray into the performance of environmental, social, and governance exchange-traded funds depicted extremely low risk-adjusted returns achieved at the cost of considerable additional systematic risk. This updated analysis of environmental, social, and governance exchange-traded funds indicates that they are finally beginning to show improvement in their performance. Their risk-adjusted performance is palpably better, and their contribution to systematic risk, less perceptible. They are also doing better in terms of alpha, although in some cases the alpha contribution is neither high nor dependable. Altogether, although this moderately improved market picture could be adequate for most individuals who want to invest with their conscience, it remains unclear whether it is enough to generate a meaning ful commitment from those who, under the Employee Retirement Income Security Act, are mandated to act in the best financial interests of 401(k) plan participants.