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The Cost of Going Green(er)
November 17, 2023
Two of the most significant trends over the past decade in investing have been the increased importance of climate-based selection criteria in portfolio construction and the continued growth of passive index funds.
In this Article we explore the differences in trading costs when transitioning to green compared to a non-Green portfolio. The cost of transitioning when using different trading strategies is examined, as well as the trade-offs between transition costs and the change in total emissions.