ESG Stocks Most Favored by Funds

ESG Stocks Most Favored by Funds. Insights into what stocks the top analysts favor plus a Christian values fund analysis.

By Ron Robins, MBA

Transcript & Links, Episode 141, November 1, 2024

Hello, Ron Robins here. Welcome to this podcast episode 141 published November 1, 2024, titled “ESG Stocks Most Favored by Funds.” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Remember that you can find a full transcript and links to content – including stock symbols and bonus material – on this episode’s podcast page at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, and I don’t receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal any investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast's webpage for links to the articles and more company and stock information. This episode will be shorter than normal as fewer articles were reviewed.

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ESG ‘transition’ funds are an emerging trend – Here the most overweight stocks by ESG funds

I’m beginning this podcast with an article featuring an unusual stock analysis that will greatly interest most ethical and sustainable investors. It’s titled ESG ‘transition’ funds are an emerging trend – Here the most overweight stocks by ESG funds. It’s by BofA Securities analysts and can be seen on msn.com. Here are some quotes.

“BofA Securities analysts named the stocks with the highest ESG funds’ weight relative to the S&P 500 (SP500)…

Funds with the word ‘transition’ in their name – including 134 E.U. funds – have attracted almost two times the inflows over the last two years, compared to funds with ‘green’ in their names, according to a recent ESMA (the European Securities and Markets Authority) Trends, Risks, and Vulnerabilities report.

These are the most overweight U.S. stocks by ESG funds, as of Aug. 31:

• Ball Corp. (BALL) – ESG funds’ weight relative to the S&P 500: 15.01
• Enphase Energy Inc. (ENPH) – ESG funds’ weight relative to the S&P 500: 6.80
• Veralto Corp. (VLTO) – ESG funds’ weight relative to the S&P 500: 6.73
• Verisk Analytics Inc. (VRSK) – ESG funds’ weight relative to the S&P 500: 5.62
• Pentair Plc (PNR) – ESG funds’ weight relative to the S&P 500: 5.62
• Realty Income Corp. (O) – ESG funds’ weight relative to the S&P 500: 5.29
• First Solar Inc. (FSLR) – ESG funds’ weight relative to the S&P 500: 5.07
• Agilent Technologies Inc. (A) – ESG funds’ weight relative to the S&P 500: 5.00
• Charter Communications Inc. (CHTR) – ESG funds’ weight relative to the S&P 500: 4.81
• Xylem Inc. (XYL) – ESG funds’ weight relative to the S&P 500: 4.80
• Bio-Rad Laboratories Inc. (BIO) – ESG funds’ weight relative to the S&P 500: 4.63
• Citizens Financial Group Inc. (CFG) – ESG funds’ weight relative to the S&P 500: 4.57
• IDEX Corp. (IEX) – ESG funds’ weight relative to the S&P 500: 4.24
• Paramount Global (PARA) – ESG funds’ weight relative to the S&P 500: 4.13
• West Pharmaceutical Services Inc. (WST) – ESG funds’ weight relative to the S&P 500: 4.12
• AutoZone Inc. (AZO) – ESG funds’ weight relative to the S&P 500: 4.11
• Fortive Corp. (FTV) – ESG funds’ weight relative to the S&P 500: 4.00
• Sysco Corp. (SYY) – ESG funds’ weight relative to the S&P 500: 3.99
• Mohawk Industries Inc. (MHK) – ESG funds’ weight relative to the S&P 500: 3.92
• Generac Holdings Inc. (GNRC) – ESG funds’ weight relative to the S&P 500: 3.91
• DR Horton Inc. (DHI) – ESG funds’ weight relative to the S&P 500: 3.79
• Aptiv Plc (APTV) – ESG funds’ weight relative to the S&P 500: 3.59
• IDEXX Laboratories Inc. (IDXX) – ESG funds’ weight relative to the S&P 500: 3.57
• Pool Corp. (POOL) – ESG funds’ weight relative to the S&P 500: 3.56
• Ecolab Inc. (ECL) – ESG funds’ weight relative to the S&P 500: 3.54”

End quotes.

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OALC: Christian-Values ETF With High Fees But Solid Fundamentals

This next article is titled OALC: Christian-Values ETF With High Fees But Solid Fundamentals. It’s by The Sunday Investor and seen on seekingalpha.com. Here are a few quotes from what is an extensive financial analysis.

“Investment Thesis

The OneAscent Large Cap Core ETF (NYSEARCA:OALC) is a Christian faith-based large-cap fund offering an excellent combination of diversification, quality, growth, and value that should allow it to compete well with its target benchmark, the SPDR S&P 500 ETF (SPY). While OneAscent Large Cap Core ETF’s 0.49% net expense ratio (0.86% before waivers) is quite high, and I will ask readers to consider this before initiating a position…

Investment Recommendation

[The] OneAscent Large Cap Core ETF is a solid single-fund solution for faith-based investors. My fundamental analysis revealed virtually no deficiencies in diversification, risk, growth, value, and quality, and unlike the Global X S&P 500 Catholic Values ETF (CATH), its composition differs enough from the S&P 500 Index, indicating that its screening process likely better reflects the values of its target audience. However, I encourage readers to consider the possibility that, with some creativity, they could achieve better returns and better alignment with their values by combining ex-sector ETFs and individual stock purchases, then using the cost savings to support specific causes in their local communities directly. I think this solution is more prudent, so as a result, I've assigned the OneAscent Large Cap Core ETF a solid ‘hold’ rating.”

End quotes. Incidentally, viewers and readers interested in what this reviewer says about creating an individual ETF and stock portfolio should consider enrolling in my DIY Ethical-Sustainable Investing Pays Tutorial!

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One Additional Article Link

Title: The Best ESG Funds For Australians by Forbes Advisor Australia. By Patrick McGimpsey, Johanna Leggatt, and Shani Jayamanne.

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Ending Comment

These are my top news stories with their stock and fund tips for this podcast “ESG Stocks Most Favored by Funds.”

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Now my next podcast will be November 15^th.

I’ll talk to you then!

Bye for now.

© 2024 Ron Robins, Investing for the Soul