School of Business
Document Type
Article
Abstract
This paper provides an exploratory analysis of biodiversity-themed funds and offers early evidence on their characteristics, performance, risk, fees, and sustainability metrics. Using a sample of 24 open-end biodiversity funds (18 mutual funds and 6 ETFs), we find that these funds are predominantly European-domiciled equity funds, recently launched, small in size, and generally receive high sustainability ratings. However, both active and passive funds underperform their benchmarks over their short track records and charge higher fees than comparable funds, consistent with the early-stage development of this segment. We also examine fund manager characteristics and find no consistent relationship with performance. Our results highlight the need for greater fee transparency, and clearer communication of sustainability–return trade-offs. © 2026 by the authors.
Publication Title
International Journal of Financial Studies
Publication Date
5-2026
Volume
14
Issue
5
ISSN
2227-7072
DOI
10.3390/ijfs14050117
Keywords
biodiversity funds, ETFs, fund performance, mutual funds, sustainability
Repository Citation
Fang, Fei and Luo, Di, "Biodiversity Mutual Funds and ETFs: Characteristics, Performance, Risk, and Fees" (2026). School of Business. 247.
https://commons.clarku.edu/faculty_school_of_management/247
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright Conditions
Fang, F., & Luo, D. (2026). Biodiversity Mutual Funds and ETFs: Characteristics, Performance, Risk, and Fees. International Journal of Financial Studies, 14(5), 117.
