Morgan Stanley
Institute for Sustainable Investing

Sustainable Funds Outperformed Traditional Peers in First Half 2026

Sustainable funds outperformed their traditional peers in the first half of 2026, according to Morgan Stanley’s Sustainable Reality review.

The Performance Story

A majority of sustainable funds beat traditional benchmarks over the period.

Resilience Factors

Quality and risk management characteristics helped sustainable strategies in volatile markets.

Investor Implications

Performance data continues to challenge the assumption that sustainability requires a return trade-off.