While active funds as a whole experience outflows during the crisis, funds that apply exclusion criteria in their investment process receive net inflows. Funds with higher sustainability ratings from Morningstar also receive larger flows, driven especially by environmental concerns. The pre-crisis trend of flows toward sustainability-oriented funds thus continues during the COVID-19 crisis. The fact that investors retain their commitment to sustainability during a major crisis suggests they have come to view sustainability as a necessity rather than a luxury good.
Insights / Podcast episode•Jun 16, 2021
Vaccine Lotteries: Worth a Shot?
Eduardo Porter, Tess Vigeland, Steve Levitt, Jeff Severts
More than a dozen states have announced large lotteries to incentivize vaccinations. On this episode,...
Finding•Jun 10, 2021
Science Skepticism Reduces Compliance with COVID-19 Shelter-in-Place Policies
Adam Brzezinski, Valentin Kecht, David Van Dijcke, Austin Wright
The proportion of people who stay at home after shelter-in-place policies go into effect is significantly lower in counties with a high concentration of science skeptics.
Finding•May 11, 2021
Financial Fragility in the COVID-19 Crisis: The Case of Investment Funds in Corporate Bond Markets
Antonio Falato, Itay Goldstein, Ali Hortaçsu
By providing a liquidity backstop for their bond holdings, the Federal Reserve bond purchase program helped to reverse corporate bond fund outflows during the COVID-19 crisis, especially for the most fragile funds.
Topics: COVID-19, Financial Markets