A strategy or emphasis on environmental, social and governance factors ("ESG") may limit the investment opportunities available to a portfolio. Therefore, the portfolio may underperform or perform differently than other portfolios that do not have an ESG investment focus. A portfolio's ESG investment focus may also result in the portfolio investing in securities or industry sectors that perform differently or maintain a different risk profile than the market generally or compared to underlying holdings that are not screened for ESG standards.
Looking for defensive investments to help combat market downturns?
MVPs for Tough Markets
High-scoring returns during bull markets tend to get the most cheers. But stocks with the most return potential in up markets could be riskier, lower quality investments that may lose a lot of ground in down/bear markets.
We believe winning over the long haul requires a well-rounded portfolio with a mix of positions that react differently as market conditions change. At times, your most valuable players (MVPs), may be higher quality stocks that seek to provide some defense when the going gets rough.
Replay: What Happened to the Stock Market
Although there were stumbles along the way, the stock market found its footing to post a remarkable gain for 2019. It continued to hit new highs until mid-February 2020 when it plunged as the coronavirus spread across the globe, oil prices dropped dramatically, and a worldwide economic slowdown unfolded.