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

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Listed:
  • Fei Fang

    (School of Management, Clark University, 950 Main St, Worcester, MA 01610, USA)

  • Sitikantha Parida

    (School of Management, Clark University, 950 Main St, Worcester, MA 01610, USA)

Abstract

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.

Suggested Citation

  • Fei Fang & Sitikantha Parida, 2024. "Assessing the Circular Economy Funds: Performance, Fees, Risks, and Sustainability," IJFS, MDPI, vol. 12(2), pages 1-15, April.
    • Handle: RePEc:gam:jijfss:v:12:y:2024:i:2:p:40-:d:1383893
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    References listed on IDEAS

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    1. John Lintner, 1965. "Security Prices, Risk, And Maximal Gains From Diversification," Journal of Finance, American Finance Association, vol. 20(4), pages 587-615, December.
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