Sep
11
Investors Can Be Ethical and Still Beat the Market, Study Says
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Authors find no evidence of premium specific to ‘vice’ stocks
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Outperformance comes from factors such as profits, investment
Ethical fund managers don’t have to be envious of the market-beating returns of so-called sin stocks. They should be able to match them without dabbling in vice, according to a study in the Fall edition of the Journal of Portfolio Management.
The study debunks the popular theory that shares in the alcohol, tobacco, gaming, and weapons industries outperform because investors shun them, enabling those with fewer moral scruples to earn a “reputation risk premium.” …
Investors Can Be Ethical and Still Beat the Market, Study Says
