ETFGI: Assets invested in (ESG) ETFs and ETPs listed globally reaches a new record

ETFGI: Assets invested in (ESG) ETFs and ETPs listed globally reaches a new record

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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$2.66 billion during November.

Total assets invested ESG ETFs and ETPs increased by 7.40% from US$48.75 billion at the end of October to a record US$52.35 billion, according to ETFGI’s November 2019 ETFs and ETPs ESG industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.)

Highlights

•Assets invested in ESG ETFs and ETPs listed globally rose 7.4% in November 2019, to reach new record AUM of $52.35 billion.

•ESG ETFs and ETPs listed globally gathered $2.66 billion in net new assets during November.

•Europe leads with 118 ESG products and 54% of the assets.

At the end of November 2019, the Global ETF/ETP industry had 269 ETFs/ETPs, with 753 listings, assets of $52.35 Bn, from 71 providers on 29 exchanges in 58 countries. Following net inflows of $2.66 billion and market moves during the month, assets invested in ESG ETFs/ETPs listed globally increased 7.4%, from $48.75 billion at the end of October 2019 to a record $52.35 billion.

Since the launch of the first ESG ETF/ETP in 2002, the iShares MSCI USA ESG Select ETF, the number and diversity of products has increased steadily, with 269 ESG ETFs/ETPs listed globally at the end of November 2019. In November, 7 new ESG ETFs/ETPs were launched.

Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered $1.48 billion in November, JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF (JREM LN) gathered $201.25 million alone.

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.