Journal of Financial Planning and Financial Planning Association (FPA) study findings examining environmental, social and governance (ESG) investing strategies determined 14 percent of advisers used or recommended cryptocurrencies last year.
Per the 2022 Trends in Investing Survey, the figure represented a significant jump from 2020 when less than 1 percent of advisers used or recommended cryptocurrencies.
According to the Journal of Financial Planning and the FPA, the 2022 survey received 413 responses from financial advisers of various backgrounds and business models.
According to respondents, in 2022, 11 percent of advisers say they use or recommend cryptocurrencies, while 13 percent plan to increase their use over the next 12 months, and 11 percent plan to lessen use over the same period.
The survey also showed that the percentage of advisers planning to decrease their use/recommendation of ESG over the next year has more than tripled to 15 percent in 2022, compared to 4 percent in 2021. Additionally, the analysis indicated more than 31 percent of planners indicated they have fielded client questions about ESG investing in the past six months. That percentage has decreased from 39 percent in 2020 and 2021.
“ESG investing aligns individual principles, purpose, and values with the virtuous greater good of the human condition and the Earth,” Journal of Financial Planning Practitioner Editor Preston Cherry said. “Sometimes such missions and esteemed purposes come with higher investment costs and slightly trimmed investing returns. If ESG investing has reached an inflection point, it could be due to several factors, including higher fees, lower performance, or a lack of ESG impact and index differentiation that inspires investment.”