ESG funds have outperformed the S&P 500 Index for the longest period since late 2022 according to research by Bloomberg.

ESG funds are up 5.4% on this year against the 2.6% return of the S&P 500 Index. The research includes only equity funds with assets under management of more than $500 million. The $1.7 billion DFA International Social Core Equity Portfolio is the top performer of the ESG funds tracked by Bloomberg, gaining 19.6% since the start of the year.

Eric Balchunas, a senior analyst at Bloomberg Intelligence, said, “It’s better to outperform than not, but it’s hard to see ESG ever becoming a core part of almost anyone’s portfolio unless you’re really, really dedicated to sustainable investing.”

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