Date of Award

Spring 5-2022

Document Type

Honors Thesis

Degree Name

Bachelor of Science

Department

Business Administration

Advisor/Committee Chair

Hany A Shawky

Abstract

Use of environmental, social and governance (ESG) data about a company or fund in the investment decision making process has increased significantly in the last 15 years. As a result, interest in understanding and analyzing the return potential that funds with high rated ESG scored holdings has grown. This paper examines the return potential ESG focused electronically traded funds (ETF) have, when compared to a conventional ETF and a benchmark. Three funds, including a conventional United States based fund, an ESG focused United States based fund and an ESG focused European based fund as well as the S&P 1500, as a benchmark are examined through a data sample from 2007 to 2020 to calculate their annual Sharpe Ratios and Information Ratios, in order to examine such return and performance differences.

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