Tools & Resources

A Guide to ESG Portfolio Construction

This guide, put together by Aperio Group, shows investors how to customize their environmental, social, and governance (ESG) portfolios according to their goals using examples based on industry exclusion and gender diversity, and highlights the trade-off between risk control and unintended exposures that may emerge in the portfolio construction process.

In the guide the authors explore six quantitative ESG strategies that can align investors’ portfolios with their ethical and financial views. These strategies offer different approaches to the trade-off between excess risk and undesired ESG attributes. They conclude that fully understanding the dynamics of these trade-offs allows investors to best select the strategy that matches their motivations and preferences.



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