ESG POPPING UP MORE Interest in ESG funds has been percolating for years, as investors reconcile their personal values with those of their portfolios. Nonetheless, the incorporation of ESG investing in the college-savings world has been slow, much as it has been in 401(k) plans. But the recent outperformance of ESG funds during the dramatic market selloff this year is likely stoking more interest. While the S&P 500 fell by nearly 24% during the first quarter of 2020, funds rated highest by Morningstar for their ESG properties experienced much smaller declines, on average, at less than 18%. That outperformance has been attributed to the risks that ESG funds tend to reduce by investing in companies that are less exposed to climate change or other risks. "It's a little bit of a risk-management tool," AKF managing director Andrea Feirstein said. Among 529 plans carrying Morningstar's top rating, gold, only two such programs include ESG funds – those of California and Virginia.