Esg vs impact investing bank of America’s equity desk

Bank of America’s equity desk highlights ESG vs Impact Investing divergence in volatility metrics, with ESG funds averaging 12.3% annualized volatility, while impact portfolios posted 13.1% due to venture-stage clean-tech holdings experiencing sharper price swings in April. Interactive Brokers also offers a basic trading platform as part of its platform line-up, as part of the basic client portal. But the broker ups the game with several other trading platforms. The flagship platform is the Trader Workstation, which offers a customizable format that includes market data, charting, streaming news and option analytics, among other features. “Many LPs have a sincere desire to create impact through their investments, as do many fund managers, but this is very hard to see if a fund doesn’t have an effective impact measurement strategy,” Wry said. “In comparison, financial performance is easy to measure, so there’s a real risk that this dominates, and funds fail to deliver meaningful impact … or worse, create unintentionally negative outcomes.” Measurement challenges are part of the explanation for the study’s finding that many impact investors don’t link employee compensation to impact performance, he added. June market reports reveal that ESG-focused US equities posted Sharpe ratios of 1.14 over the trailing year, compared to 0.98 for traditional benchmarks. In ESG vs Impact Investing analysis, impact strategies tend to align with thematic growth sectors, driving higher variance in returns.