ESG Funds versus traditional funds: a performance analysis in the brazilian market (From 2021 to 2024)
DOI:
https://doi.org/10.21680/2176-9036.2026v18n2ID41570Keywords:
ESG; investment funds; sustainability; profitability; performance.Abstract
Purpose: To examines the performance differences between Environmental, Social and Governance (ESG) and traditional funds in the Brazilian market, using risk-adjusted return measures.
Methodology: A quantitative approach was used, with secondary data from the Brazilian Securities Commission on the returns of 3,538 investment funds from 2006 to 2026. The Sharpe Ratio and t-test were applied to address this objective.
Results: In the graphical analysis, ESG funds showed better performance and higher volatility than non-ESG funds. However, the Student’s t-test showed that these differences are not statistically significant. Thus, there is insufficient evidence to say that the two portfolios perform differently in a statistically meaningful way.
Contributions: This study contributes to the academic and practical debate on sustainable investments, providing insights for investors, fund managers, and policymakers seeking to balance financial returns with socio-environmental responsibility.
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