SUSTAINABLE-INVESTING practice question 22 of 35
The rules that can be used to construct ESG exchange-traded funds (ETFs) include:
Full set: 802 questionsCorrect Answer:
C. Both thematic investing and tilting weightings based on ESG scores
Explanation
ESG ETFs can be constructed using a variety of rules, including both thematic investing and tilting weightings based on ESG scores. Thematic investing focuses on specific ESG themes such as clean energy, while tilting weightings involves adjusting the portfolio's exposure to companies with higher or lower ESG scores.ESG Reference: Chapter 9, Page 510 - Investment Mandates, Portfolio Analytics & Client Reporting in the ESG textbook.
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