The ESG Phenomenon – ESG-Themed Exchange-Traded Funds, Products Boom
Developments in and around the ESG investment space.
Assets held in exchange-traded funds and products that track ESG investment process reached a record $371 billion at the end of November, taking $16.63 billion of inflows during the month, figures show. The total figure rose by 2.3 per cent from a year earlier.
Since the start of this year, inflows have totalled $146.84 billion, far above the $68.59 billion for the same period a year ago, ETFGI, a firm monitoring development in the space, said in a statement late last week.
The asset increase has been strong – rising 84.3 per cent so far this year, going from $201 billion at the end of 2020, to $371 billion.
The ETF and product business has surged in recent years due to interest in market-tracking, low-cost investment entities in contrast to traditional, and actively managed funds that typically charge a higher fee. To some extent, the bull market in equities over the past 12 years has fuelled the market’s expansion.
(This news service has a new programme, its Wealth For Good Awards, designed to highlight the work wealth managers are doing to drive change around the environment, society and governance. To find out more about the awards, click on this link. Submissions close on 4 February. Winners, finalists and commended entries will be celebrated in May this year.)