| Engagement with Companies | Can engage directly with companies to influence ESG practices. | Limited engagement: relies on indices and does not actively influence companies. |
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| Flexibility and Adaptability | High; can quickly adapt to changing ESG criteria and issues. | Low; follows a set index, making it less responsive to new ESG developments. |
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| ESG Criteria Complexity Handling | May be better equipped to handle the complexities and nuances of ESG issues. | May not fully capture the depth of ESG issues due to reliance on indices. |
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| Customization | May offer tailored ESG investment strategies that can align closely with specific investor values and goals. | Offers standardized ESG approaches based on existing indices, limiting customization. |
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| Cost | Generally higher due to active management and research efforts. | Lower due to the passive nature and reduced management fees. |
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| Transparency | Detailed insights into investment decisions and company engagements. | Transparency through index composition but limited insight into real-time decisions. |
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| Investment Performance | Performance can vary; potential for higher returns due to active selection but also higher risk. | Consistent with the market index performance; lower risk but potentially lower returns compared to well-managed active funds. |
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