The stocks that score highly on environmental, social, and governance (ESG) factors are expected to continue attracting significant investor attention owing to growing awareness about environmental and social issues. So, we think investors looking to cash in on the growth of sustainability-focused investing trends could invest in Apple (AAPL), Microsoft (MSFT), Visa (V), and UnitedHealth (UNH). Let’s discuss.Environmental, social, and governance (ESG) focused investing has increased exponentially due to growing climate change concerns and the rising demand for socially responsible business activity. According to a Morningstar report, sustainable funds’ total assets rose 19% to nearly $2 trillion in the first quarter, marking a record high for the fourth quarter in a row. Investor’s interest in sustainability-focused investing is evidenced by the Vanguard ESG U.S. Stock ETF’s (ESGV) 5.5% gains over the past three months.
Last month, S&P Dow Jones CEO Dan Drape asserted that ESG-based investing is one of their biggest growth opportunities. Furthermore, according to BlackRock, Inc.’s (NYSE:BLK) head of iShares Americas, Armando Senra, ESG investments could become a $1 trillion category by 2030.
Given this backdrop, we think it could be wise to bet on shares of established companies Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Visa Inc . (NYSE:V), and UnitedHealth Group Incorporated (NYSE:UNH). These four companies have significant market dominance and are among ESGV’s top holdings.