The other really crazy thing is that, almost by definition, restricting your portfolio to just an index of non-ESG companies should outperform the market. (If

The other really crazy thing is that, almost by definition, restricting your portfolio to just an index of non-ESG companies should outperform the market. (If that wasn't the case, it would be irrational for any company _not_ to be ESG compliant, right?) But such an obvious arbitrage opportunity would hardly last long. So I suspect for every dollar someone shifts out of the general market into ESG only funds, someone else shifts a dollar in the opposite direction, creating no net effect except a wealth transfer from more ethically concerned to less ethically concerned investors. See, extending the "Consumers will vote with their feet!" paradigm to the stock market is moronic. It just means "Be a sucker and give away your returns to anyone with less qualms." If a rule is worth wanting companies to follow, it needs to be made a law so it will apply equally to all competitors, else you get a classic race to the bottom.