Investors are pouring record amounts of money into passive ESG funds — but the vagueness of just how money managers determine the makeup of their sustainable funds is now attracting attention from regulators.
Why it matters: Investors are paying high management fees for these "socially responsible" funds. It's important that they get what they pay for.
By the numbers: The average expense ratio, or how much companies charge to manage an exchange-traded fund, for ESGs is 0.42%, according to ETF.com.
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