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Why Sustainable Investing Strategies Are Doing Better Than You Might Think | Morningstar

morningstar.com·Apr 28, 2026

Sustainability-focused indexes have performed nearly as well as the broader US stock market in 2026, with semiconductor stocks significantly contributing to gains, while software stocks have generally detracted from performance. Despite challenges in the energy sector and underperformance from some tech stocks, the overall impact on sustainable investing strategies has been mitigated by strong performances from key companies in AI infrastructure and energy-efficient technologies.

The most valuable insight for you as an investor is that, despite the challenging conditions for sustainable investing due to rising energy prices, ESG-focused indexes have shown resilience by leveraging tech stocks, particularly in AI infrastructure, to nearly match or even outperform the broader market. This suggests a strategic opportunity to consider sustainable investing strategies with strong tech and AI infrastructure exposure as a hedge against traditional energy sector volatility.

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