ESG ETFs Hit Record High AUM – ValueWalk Premium
Global ESG ETFs And ETPs

ESG ETFs Hit Record High AUM

ETFGI reports assets invested in Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally reached a new record of US$82 billion at the end of May 2020

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LONDON — June 25, 2020 — ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of US$4.33 billion during May, bringing year-to-date net inflows to US$28.53 billion which is significantly more than the US$7.19 billion gathered at this point last year. Total assets invested in ESG ETFs and ETPs increased by 10.4% from US$74.03 billion at the end of April 2020 to  reach a new record of US$82 billion at the end of May, according to ETFGI’s May 2020 ETF and ETP ESG industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.)

Highlights

  • Assets invested in ESG ETFs and ETPs listed globally reached a new record of $82 Bn.
  • YTD through end of May, ETF/ETP listed globally gathered a record level of net inflows of $28.53 Bn 
  • Europe leads with the most assets and largest number of ESG products, followed by the US and APAC (ex-Japan).

“The S&P 500 gained 4.8% in May and remains only 5.0% down from its level at the beginning of the year, as markets anticipated relief from a COVID-19-driven economic slowdown. Developed markets outside the U.S. were also up 4.8% for the month with Sweden (up 9.9%) and Germany (up 9.2%) the top performers, while Hong Kong (down 7.7%), was the only market to be down for the month due to recent political turmoil.  Emerging markets lagged during the month, gaining 1.3% as the economic impact of virus shutdowns remains somewhat more uncertain compared to developed regions.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

The Global ESG ETF/ETP industry had 341 ETFs/ETPs, with 937 listings, assets of $82 Bn, from 82 providers on 31 exchanges in 27 countries.

Global ESG ETF and ETP asset growth as at end of May 2020

Global ESG ETFs And ETPs

source_4

Since the launch of the first ESG ETF/ETP in 2002, the iShares MSCI USA ESG Select ETF, the number and diversity of products have increased steadily, with 341 ESG ETFs/ETPs and 937 listings globally at the end of May 2020.

During May, 66 new ESG ETFs/ETPs were launched.

Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered $3.32 Bn at the end of May, iShares ESG MSCI USA ETF (ESGU US) gathered $558.10 Mn alone.

Top 20 ESG ETFs/ETPs by net new assets May 2020      

Name Ticker Assets

(US$ Mn)

May-20

NNA

(US$ Mn)

YTD-20

NNA

(US$ Mn)

May-20

iShares ESG MSCI USA ETF ESGU US 7,335.70 5,689.13 558.10
Xtrackers MSCI USA ESG Leaders Equity ETF USSG US 2,259.08 607.78 497.42
Xtrackers ESG MSCI Japan UCITS ETF XZMJ LN 481.62 310.67 340.37
iShares ESG MSCI USA Leaders ETF SUSL US 2,268.65 493.40 314.31
iShares MSCI Europe SRI UCITS ETF – Acc IESG LN 1,652.40 679.57 217.67
iShares MSCI USA SRI UCITS ETF – Acc SUAS LN 2,526.54 690.51 182.10
iShares ESG MSCI EM ETF ESGE US 3,167.83 2,611.96 161.75
UBS Irl ETF PLC – MSCI USA Socially Responsible UCITS ETF 4UBK GY 151.09 139.50 139.50
iShares ESG MSCI EAFE ETF ESGD US 2,207.72 907.19 101.20
UBS Irl ETF plc – S&P 500 ESG UCITS ETF – Dis S5SD GY 201.74 153.87 90.25
iShares MSCI World SRI UCITS ETF – EUR – Acc – Acc SUSW LN 1,149.35 502.09 86.38
Xtrackers II ESG EUR Corporate Bond UCITS ETF DR XB4F GY 545.56 108.14 84.55
Vanguard ESG US Stock ETF ESGV US 1,424.91 547.88 82.03
iShares MSCI EM IMI ESG Screened UCITS ETF – Acc – Acc SAEM LN 528.84 201.08 79.37
AMUNDI INDEX MSCI EUROPE SRI – UCITS ETF DR (C) – Acc EUSRI FP 794.66 558.03 71.67
iShares Euro Corp Bond SRI UCITS ETF SUOE LN 1,134.94 113.06 71.19
UBS ETF (LU) – MSCI EMU Socially Responsible UCITS ETF (EUR) ACC EMUSRI SW 614.89 215.69 66.78
iShares MSCI USA ESG Select ETF SUSA US 1,428.65 251.78 63.16
BNP Paribas Easy EUR Corp Bond SRI Fossil Free – Acc SRIC FP 129.64 89.85 62.02
iShares MSCI USA ESG Screened UCITS ETF – Dist SDUS LN 110.44 65.11 58.95

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Confusion persists around what constitutes an ESG fund. According to PRI, a UN-supported initiative which seeks to understand the investment implications of ESG issues, 56% of adopters believe there is a lack of clarity in ESG definitions. ETFGI’s classification system attempts to provide greater precision, with ETFs/ETPs listed globally organised into categories, including core ESG products and theme-based groups, such as Clean/Alternative Energies and Gender Diversity.

Article by ETFGI


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