ETFGI reports assets invested in ESG ETFs and ETPs listed globally broke through the US$100 billion milestone at end of July 2020

 

LONDONAugust 21, 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 broke through the US$100 billion milestone at end of July 2020.   The products gathered net inflows of US$6.76 billion during July, bringing year-to-date net inflows to a record US$38.78 billion which is significantly higher than the US$12.37 billion gathered at this point last year and the US$26.71 Billion gathered in all of 2019. Total assets invested in ESG ETFs and ETPs increased by 14.7% from US$88 billion at the end of June 2020 to US$101 billion, according to ETFGI’s July 2020 ETF and ETP ESG industry landscape insights report, a monthly report which is part of a paid-for annual research subscription service.  (All dollar values in USD unless otherwise noted.) 

Highlights

  • Assets invested in ESG ETFs and ETPs listed globally break through the $100 billion milestone to reach a new record of $101 billion.
  • YTD through end of July, ETF/ETP listed globally gathered a record $38.78 Bn in net inflows surpassing the $26.71 billion gathered in 2019.
  • European domiciled ETFs/ETPs account for 51.6% of overall assets followed by products domiciled in the US which account for 40.1% of the overall assets.

The S&P 500 gained 5.6% in July, aided by the U.S. Federal Reserve stimulus and strong earnings.   International markets also gained, with Developed Ex-U.S. and Emerging up 3.0% and 8.5%, respectively. In the developed markets Scandinavian countries benefited most, led by Norway (up 10.8%) and Sweden (up 10.1%); while Japan (down 2.0%) was the sole negative performer among developed countries. Dollar weakness contributed toward the positive momentum in Emerging markets where 19 of 25 countries gained, led by Brazil (up 14.4%) and Pakistan (up 13.4%), while Taiwan (up 12.1%) neared an all-time high.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

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.  The Global ESG ETF/ETP industry had 393 ETFs/ETPs, with 1,077 listings, assets of $101 Bn, from 92 providers on 31 exchanges in 25 countries.

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

 

Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered $4.04 billion at the end of July, Amundi MSCI Emerging ESG Leaders UCITS ETF DR - Acc (SADM GY) gathered $588.82 million alone.

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

Name

Ticker

Assets

(US$ Mn)

Jul-20

NNA

(US$ Mn)

YTD-20

NNA

(US$ Mn)

Jul-20

Amundi MSCI Emerging ESG Leaders UCITS ETF DR - Acc

SADM GY

621.43

594.36

588.82

iShares ESG MSCI USA ETF

ESGU US

8036.15

5806.75

587.05

Cathay Taiwan Select ESG Sustainability High Yield ETF

00878 TT

497.15

493.20

493.20

iShares Global Clean Energy UCITS ETF

INRG LN

1326.19

818.89

259.03

Quadratic Interest Rate Volatility and Inflation ETF

IVOL US

392.18

300.16

219.81

iShares ESG MSCI EAFE ETF

ESGD US

2719.61

1309.20

217.89

iShares ESG USD Corporate Bond ETF

SUSC US

459.06

335.47

214.87

Xtrackers MSCI Japan ESG UCITS ETF  - 1C - Acc

XZMJ LN

656.76

489.09

157.86

CSIF IE MSCI World ESG Leaders Minimum Volatility Blue UCITS ETF

CSY9 GY

142.36

143.19

143.19

iShares MSCI Europe SRI UCITS ETF - Acc

IESG LN

2065.76

925.50

141.42

iShares MSCI USA SRI UCITS ETF - Acc

SUAS LN

3167.88

1076.02

137.52

iShares ESG US Aggregate Bond ETF - Acc

EAGG US

439.52

267.79

124.46

UBS ETF - Bl Barclays MSCI Euro Area Liquid Corporates Sustainable UCITS ETF

CBSE NA

750.30

243.84

112.40

Invesco Solar ETF

TAN US

898.20

231.69

104.66

UBS Irl ETF plc - S&P 500 ESG UCITS ETF - USD - Acc

S5ESG SW

412.44

214.41

104.44

Vanguard ESG US Stock ETF

ESGV US

1768.84

749.45

100.54

iShares Global Clean Energy ETF

ICLN US

925.76

354.79

87.65

Lyxor MSCI Europe ESG Leaders DR UCITS ETF - Acc

ESGE FP

921.27

313.29

87.16

iShares USD Corp Bond ESG UCITS ETF - Acc

SUOA NA

94.77

92.27

81.05

Xtrackers MSCI USA ESG UCITS ETF  - 1C - Acc

XZMU GY

314.43

197.55

77.95

 

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. 

 

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NEW ETF TV Episode 35  -  Jim Goldie, head of capital markets for EMEA at Invesco, highlights the chief trends that are driving investment in ETFs and ETPs today, but also the impact of regulation on ETF/ETP trading that may change the mechanics of buying, selling and settling exchange-traded instruments.

 

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