Traditional socially responsible investing has been criticized for market-like exposure with a higher cost for the exclusionary screen of “sin stocks,” such as those in the tobacco, alcohol, and firearms industries. ESG is the new face of values-based investing which utilizes an inclusionary methodology to select companies exhibiting favorable traits in three distinct categories: environmental, social, and governance.

Portfolios are focused on total return, meaning growth of value through interest, capital gains, and dividends proportionate to the investor’s risk tolerance.