Responsible investment, socially responsible investing, sustainable investing, ethical investing, green investing, and ESG. What are the differences between these investment terms? How long has responsible investing even been around?
Sequencing risk, or "sequence of returns risk", refers to the potential impact of the order in which returns are received on the overall performance of an investment portfolio. When markets fluctuate more widely, the timing and order of returns are of more concern, particularly for investors that have liquidity needs from their portfolios.
Understanding how ESG (Environmental, Social and Governance) factors impact investment decisions, and the inclusions and exclusions that comprise a portfolio is important. A better understanding of your investments should help align them with your personal beliefs.