SRI indices outperform over past five years

ETFs tracking socially responsible investing (SRI) indices have outperformed those that track the parent indices over the past five years, according to UBS Global Asset Management (GAM) research.

Outperformance was evident across the MSCI World, North America, Pacific, Europe and Middle East, UK IMI, Emerging Markets, and Japan SRI indices, the firm said.

SRI indices have performed well of late, given their lower exposure to commodities and oil. But UBS GAM figures indicate the outperformance has been evident over five years – well before commodity prices and concerns about a slowdown in China affected stocks.

The MSCI Europe and Middle East SRI index delivered the highest returns over its parent index, returning 10.2 per cent versus 7.4 per cent on the main index, as of December 2015.

The World, Pacific, and Japan SRI indices have been outperforming their parents since September 2007 – the longest period of all indices.