ESG Quality

Good ESG scoresLarge and mid cap quality stocks

The ESG Quality portfolio is a portfolio designed to systematically invest in companies with positive environmental, social and governance (ESG) factors, while delivering return and risk characteristics of large and mid cap quality stocks within the US equity market.

Portfolio risk score
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Smart Beta

Management fee


Min investment


Performance Chart


Last 30 days 3.4%
Last 90 days 3.4%
Last 365 days 15.4%
Since inception (Jul 24, 2019) 63.7%
Since inception (annualized) 10.4%
2024 (YTD) 6.4%
2023 21.1%
2022 -12.7%
2021 25.1%
2020 9.3%
The standard deviation of portfolio returns; a measure of risk.
Sharpe ratio
A measure of risk-adjusted portfolio return.
Sortino ratio
A measure of portfolio return adjusted for down-side volatility.
Maximum drawdown
Maximum value lost from peak to trough over the last year.
Value-at-risk (95%, 1 week)
Estimates the potential loss of a portfolio with a specified confidence level and time horizon.
Investment (below min)
Annual costs

Portfolio information


A factor-based approach to portfolio construction is grounded in academic research. The goal is to achieve an alternative risk-return profile, which is more attractive than a simple capitalization-weighted index such as the S&P 500. Interactive Advisors has undertaken research and back-testing to decide on the fundamental factors and rules used to construct this portfolio.


The portfolio is constructed using a rules-based algorithm to determine position allocations. The investable universe includes the largest market capitalization companies that trade in the US stock exchanges and have above average ESG scores relative to their industry. We use third-party-provided ESG scores in our portfolio screening and construction process. The portfolio is rebalanced quarterly and stocks exhibiting attractive quality characteristics have a greater chance of being included.

Sell discipline

Sell decisions are based only upon the quarterly rebalance criteria: stocks sold are replaced by stocks with more attractive quality characteristics.


Positions in stocks undergoing corporate actions may be sold or adjusted.

Portfolio updates




Interactive Advisors is a pioneer in online investing. Interactive Advisors offers a variety of portfolios, including the Socially Responsible Investing portfolios, which are managed by Interactive Advisors's Chief Investment Officer and Investment Management team.

The “Socially Responsible Investing” approach to portfolio construction is designed to invest in companies that operate businesses with socially desirable products and services as well as the incorporation of ESG factors into investment decision-making, thus incentivizing better practices from the companies.

Portfolios are constructed using a rules-based approach and offered at a relatively low cost.

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Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.

This portfolio was launched on Interactive Advisors on July 24, 2019. On that date, Interactive Advisors started trading its own funds in a brokerage account trading this strategy. This portfolio was opened to client investments on July 24, 2019. All performance information on this page is actual performance of the Interactive Advisors proprietary account and presented “net of fees”. The actual performance chart is provided for informational purposes only, and should not be used as the basis for making an investment decision. Actual client returns will differ.

The ESG variants of the Smart Beta and Asset Allocation Portfolios and the Socially Responsible Investing portfolios use an Environmental, Social and Governance (“ESG”) investment strategy. Such a strategy could limit the types and number of investment opportunities available to this portfolio, lead the portfolio to underperform a portfolio without an ESG focus or with a distinct ESG focus, and result in the portfolio investing in securities or industry sectors that underperform the market as a whole or foregoing opportunities to invest in securities that might otherwise be advantageous to invest in. Interactive Advisors could also be unsuccessful in creating a portfolio investing in stocks of companies or ETFs made up of companies that exhibit positive or favorable ESG characteristics and the ETF manager (or the provider of the index the ETF seeks to track) may not succeed in selecting issuers that exhibit positive or favorable ESG characteristics in constructing the ETFs.

Additional information on the risks, conflicts of interest, applicable brokerage commissions, fractional shares, and limitations on investments and divestments associated with this portfolio can be found here and on the Forms and Agreements page.