ESG ETFs Hit Record High AUMGuest Post
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
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.)
- 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
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
|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|
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