Are Sustainable Investors Fee Sensitive?

37 Pages Posted: 15 Aug 2022

Date Written: August 10, 2022


This paper analyzes whether sustainable investors are sensitive to fees and whether investors in funds with a higher sustainability rating are more sensitive to fees than investors in non-sustainable funds. Using an international sample of equity mutual funds, I find that they in general are more sensitive to fees, and that this sensitivity increases with Morningstar's globe ratings. Moreover, investors in funds without an explicit sustainability objective are more sensitive to fees than investors in funds with such an objective. The results indicate that sustainable investors elicit a stronger response to fees than other investors, but that those investing in sustainable funds without a sustainability mandate respond the most.

Keywords: Sustainability; ESG, Fund Fees, Mutual Funds, Fund Flows, Ratings

JEL Classification: D14, G11, G24

Suggested Citation

Sjuve, André, Are Sustainable Investors Fee Sensitive? (August 10, 2022). Available at SSRN: or

André Sjuve (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045

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