Property invested in environmental, social, and governance (ESG) exchange-traded funds and exchange-traded merchandise listed globally reached a file US$280 billion on the finish of Could 2021. That’s up 4.1% from US$269 billion on the finish of April, analysis and consultancy agency ETFGI says.
Internet inflows of ESG ETFs and ETPs reached US$6.54 billion in Could, bringing year-to-date internet inflows to US$73.95 billion, up from US$26.42 billion throughout the identical interval in 2020.
Because the launch of the primary ESG ETF/ETP in 2002, the iShares MSCI USA ESG Choose ETF, the quantity and variety of merchandise have elevated steadily, with 620 ESG ETFs/ETPs and 1,834 listings globally on the finish of Could 2021. They got here from 139 suppliers on 37 exchanges in 30 international locations. A complete of 18 ESG ETFs and ETPs have been launched in Could alone.
Substantial inflows will be attributed to the highest 20 ETFs and ETPs by internet new property, which collectively gathered US$4.03 billion in Could. The iShares ESG Conscious MSCI USA ETF gathered US$417 million, the biggest in internet inflows.
Confusion persists round what constitutes an ESG fund. In accordance with Rules for Accountable Funding, a United Nations-supported initiative which seeks to grasp the funding implications of ESG points, 56% of adopters imagine there’s a lack of readability in ESG definitions. ETFGI says its classification system makes an attempt to supply larger precision, with ETFs and ETPs listed globally organized into classes, together with core ESG merchandise and theme-based teams, similar to clear/different energies and gender variety.