The fund’s gross expense ratio is 0.45%, but a fee waiver reduces the net expense ratio to 0.29%.
ESG investing has been gaining in popularity even as some people are confused about how to compare the various ESG data and ratings. Others, including SEC Commissioner Hester Peirce, have criticized ESG as being a nebulous concept with no enforceable or common meaning.
Frankly, that could apply to the RAFE fund’s exclusion of companies that have “major involvement” in certain proscribed industries such as fossil fuels. What exactly does that mean? That should be clearly spelled out in fund literature.
Meanwhile, a recent article in the Wall Street Journal said the Securities and Exchange Commission has contacted some investment managers with ESG offerings seeking information about their investing criteria.
Nonetheless, many people believe the basic principles behind ESG investing have merit both philosophically and financially, and this sector likely will continue to be a growth area as fund sponsors seek to satisfy investor demand.