Title: The rise of sustainable, responsible and impact investing: ETFs and ESG

Authors: Jesus Carmona; Natalya Delcoure; Francisco Haces Fernandez

Addresses: College of Business Administration, Texas A&M University – Kingsville, 700 University Blvd., Kingsville, TX 78363, USA ' College of Business Administration, Texas A&M University – Kingsville, 700 University Blvd., Kingsville, TX 78363, USA ' College of Business Administration, Texas A&M University – Kingsville, 700 University Blvd., Kingsville, TX 78363, USA

Abstract: Socially responsible investing (SRI) has gained momentum in recent years. This research study investigated the impact of diverse events on SRI exchange-traded funds (ETFs). The applied event study methodology identified significant abnormal returns around the event dates. Some events had an impact across all the financial instruments, while others were specific to particular sectors. The results indicated that financial markets evaluate sustainable investing and renewable energy as resilient options in the face of uncertainty, such as the financial impacts of COVID-19. These results are further validated by sentiment analysis, indicating that social media evaluate SRI as less risky than traditional mutual funds in times of uncertainty.

Keywords: socially responsible investing; SRI; environmental, social and corporate governance criteria; exchange-traded funds; sentiment analysis; event study methodology.

DOI: 10.1504/IJPAM.2024.137752

International Journal of Portfolio Analysis and Management, 2024 Vol.2 No.4, pp.285 - 315

Received: 11 Feb 2021
Accepted: 22 Apr 2021
Published online: 05 Apr 2024 *

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