Question: give a response to this discussion post in a friendly casual tone While passive is great for low cost and exposure breadth, it can be

give a response to this discussion post in a friendly casual tone While passive is great for low cost and exposure breadth, it can be behind when an investor needs specialized ESG or thematic targets. Most passive ESG strategies are predicated on screening methodologies tied to an index, so they may not be as discerning or forward-looking in searching out material ESG risks or investing in emerging themes. For example, the majority of ESG ETFs simply exclude a few sectors like tobacco or arms but don't necessarily reward companies innovating or leading on sustainability. Active management offers more flexibility in this space. Active ESG managers are able to dig deeper into company data, engage with corporate management, and alter holdings quickly if a company's ESG profile changes. They're also more likely to pick up on newer trends, like biodiversity or AI ethics, before they become mainstream and are added to indices. A good real world example is the Parnassus Core Equity Fund which is an actively managed ESG fund. It employs both negative screens and positive ESG integration, whereby analysts assess each company's performance on material ESG factors. In contrast to a passive ESG index fund like iShares ESG Aware MSCI USA ETF, which effectively reproduces the S&P 500 with modest ESG tweaks, Parnassus is high conviction, with fewer holdings and active management engagement with management teams. Consistent with studies in the Journal of Portfolio Management, active ESG str

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