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ESG Focus: Record US$82bn In ESG ETFs & ETPs

ESG Focus | Jul 24 2020

FNArena's dedicated ESG Focus news section zooms in on matters Environmental, Social & Governance (ESG) that are increasingly guiding investors preferences and decisions globally. For more news updates, past and future: 
https://www.fnarena.com/index.php/financial-news/daily-financial-news/category/esg-focus/

ESG Focus: Record US$82bn In ESG ETFs & ETPs

-Total assets invested in ESG ETFs and ETPs a record US$82bn
-June net inflows of US3.49bn
-Number and diversity of products increasing steadily

By Mark Woodruff

Research and consultancy firm ETFGI reports year-to-date net inflows of US$32.02bn went into globally-listed ESG exchange traded funds (ETFs) and exchange traded products (ETPs) by the end of June. This is materially higher than the US$9.86bn recorded at the same point in time in 2019.

This brings total assets invested in ESG ETFs and ETPs to a new record of US$82bn.

During June 2020, ETFGI reported net inflows of US$3.49bn into ESG ETFs and ETPs, of which the top 20 ETFs/ETPs accounted for US$2.67bn.

The number and diversity of products have increased steadily since the launch of the first ESG ETF/ETP in 2002. The industry now consists of 369 ETFs/ETPs from 89 providers on 31 exchanges in 25 countries. Products domiciled in Europe account for 50.9% of overall assets, followed by those in the US with 40.5%.

According to a UN-supported initiative seeking to understand the investment implications of ESG issues, 56% of adopters believe ESG definitions are unclear. As a result, ETFGI attempts to organise ETFs/ETPs into categories including core ESG products and theme-based groups, such as Clean/Alternative Energies and Gender Diversity.

FNArena's dedicated ESG Focus news section zooms in on matters Environmental, Social & Governance (ESG) that are increasingly guiding investors preferences and decisions globally. For more news updates, past and future: 
https://www.fnarena.com/index.php/financial-news/daily-financial-news/category/esg-focus/

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