Bringing ESG Considerations to Equal-Weight Indices

Equal-weight indices can have many benefits, notably long-term outperformance—largely driven by exposures to small size and value, along with their associated risk premia—as well as reduced concentration in the largest names. 

With many investors looking to integrate ESG considerations into their portfolios, we ask whether it is possible to gain the benefits of equal weighting while incorporating ESG criteria.  This raises three sub-questions.

You can now read the full whitepaper at the link below