Assessing the Circular Economy Funds: Performance, Fees, Risks, and Sustainability

We studied various fund investing options in the circular economy sector. We found that most circular economy mutual funds and exchange-traded funds charge higher fees and take higher risks than their benchmarks. However, they appear to have underperformed their benchmarks during their short existen...

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Bibliographic Details
Published in:International journal of financial studies 2024-06, Vol.12 (2), p.40
Main Authors: Fang, Fei, Parida, Sitikantha
Format: Article
Language:English
Subjects:
Banking industry
Bond funds
Business models
Circular economy
Economic aspects
Environmental sustainability
Equity funds
Exchange-traded funds
exchange-traded funds (ETFs)
Global funds
Information services
Investors
Mutual funds
New business enterprises
Online information services
Online services
Performance evaluation
private equities
Private equity
Ratios
Sustainability
sustainable
Venture capital
venture capitals
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Summary:We studied various fund investing options in the circular economy sector. We found that most circular economy mutual funds and exchange-traded funds charge higher fees and take higher risks than their benchmarks. However, they appear to have underperformed their benchmarks during their short existence so far. Most of these funds are rated as sustainable and low-carbon funds. Investors keen on circular economy startups may consider private equity/venture capital funds, but most of these funds are exclusive to institutional and accredited investors.
ISSN:2227-7072
2227-7072
DOI:10.3390/ijfs12020040