Fund Management
ESG-Themed Funds Hit By Market Volatility - Data

Funds and products playing to ESG themes may be all the rage but they couldn't avoid taking a hit from weaker markets late last year.
Exchange-traded funds and products that replicate returns
involved using environmental, social and governance-themed (ESG)
investment approaches were hit by market turbulence late last
year, figures show.
ETFs and ETPs in this category gathered net inflows of $679
million in December last year, while total assets fell to $22.47
billion, down by 3.2 per cent from the previous month, according
to figures from research firm ETFGI. Even so, for the year as
a whole, the sector saw total assets rise by 29.51 per cent from
a year earlier.
To put the figures into context, across the entire ETF and ETP
sector, total assets were $4.79 trillion at the end of 2018. The
model for environmental, social and governance-themed investment
has grown relatively quickly in recent years but is still a small
portion of the overall market.
ETFs are typically open-ended, index-based funds bought and
sold like ordinary shares on a stock exchange and offer broad
exposure across developed, emerging and frontier markets,
equities, fixed income and commodities. Exchange-traded products
are products that have similarities to ETFs in the way they trade
and settle, but do not use an open-end fund structure.