European ESG fund fees fall further than non-ESG peers over past decade

Asset-weighted costs of 0.83%

European ESG funds are now less expensive than their conventional counterparts on average, with their costs declining over the past decade due to the proliferation of new strategies and growing competition in the ESG sector.

According to data from Morningstar Sustainalytics, the average asset-weighted representative cost for ESG funds in six of the most popular Morningstar categories was 0.83%, compared to 0.9% recorded for non-ESG funds. The report used a sample of over 110,000 retail share classes from over 37,400 funds in Europe and analysed funds within the Global Large-Cap Blend Equity, Europe Large-Cap Blend Equity, US Large-Cap Blend Equity, Global Emerging Market Equity, as well as Europe Corporate Bond and Other Bond groups. Morningstar: Money market funds dominate inflows in May The latest fi...