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Top Stocks Widely Owned by Small-Cap ESG Funds


Published on 2024-12-31 07:21:10 - Morningstar
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  • Aptar, Clearway Energy, and Darling are among sustainable holdings. Finding the small-cap stocks that are uniquely owned by sustainable funds can be a good exercise for investors seeking exposure to the carbon transition or other sustainability-related themes.

The article from Morningstar discusses the top stocks commonly held by small-cap ESG (Environmental, Social, and Governance) funds, highlighting the growing interest in sustainable investing within the small-cap sector. It notes that while large-cap companies often dominate ESG discussions, small-cap companies are increasingly scrutinized for their ESG performance due to their potential for growth and innovation in sustainability practices. The article lists several companies like Enphase Energy, which focuses on solar energy, and First Solar, another solar technology firm, as popular among these funds due to their alignment with environmental goals. Additionally, companies like Teladoc Health, which provides telemedicine services, are favored for their social impact. The piece also touches on the challenges of ESG investing in small caps, such as less transparency and fewer resources for ESG reporting, but emphasizes the potential for these companies to make significant strides in sustainability, thereby attracting ESG-focused investors looking for both ethical alignment and financial returns.

Read the Full Morningstar Article at:
[ https://www.morningstar.com/sustainable-investing/top-stocks-widely-owned-by-small-cap-esg-funds ]
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