ETFGI has launched a new annual subscription research service providing monthly reports covering trends in ESG ETFs and ETPs listed around the world, and access to a database of all ESG ETFs and ETPs.
Assets invested in ETFs and ETPs listed globally providing exposure to indices with Environmental, Social, and Governance (ESG) gathered net inflows of USUSD160 million during August 2018. Total assets increased to USUSD22.0 billion at the end of August 2018, up an 6.82 per cent from USUSD20.61 billion at the end of July, according to ETFGI’s August 2018 ETFGI Global ESG ETFs and ETPs Landscape report.
“On 22 August 2018 the S&P 500 marked its longest bull market – 3,453 days, without a bear market – a 20 per cent drop from the index’s 52-week high,” says says Deborah Fuhr, managing partner and a founder of ETFGI. “August was a strong month for US equities with economic strength and strong corporate earnings pushing the S&P 500 to reach record highs and gain 3.26 per cent during the month and up 9.94 per cent year to date. Most non-US markets suffered declines during August due to investors’ concerns over trade tensions, Brexit, currency crises and a fear of contagion. Developed markets ex US declined 1.44 per cent in August while up 0.46 per cent YTD, EM markets were down 3.51 per cent and are down 0.81 per cent YTD and Frontier markets were down 4.50 per cent and are down 1.66 per cent YTD.”
At the end of August 2018, there were 172 ESG classified ETFs/ETPs, with 347 listings, from 55 providers on 23 exchanges. Europe currently has the largest market, with 66 products and USD10.1 billion under management, closely followed by the US with 65 products and USD9.0 billion under management.
ESG ETFs/ETPs were primarily equity based at the end of August, making up 92.3 per cent of total assets. Fixed income based ESG ETFs/ETPs accounted for 7 per cent of total assets. iShares was the largest ESG ETF/ETP provider, with assets of USD7.024 billion, attracting USD19 million in new assets over the month.
A high proportion of net inflows during August can be attributed to the top 20 ESG ETFs/ETPs by net new assets, which collectively gathered USD246 million. The iShares MSCI EAFE ESG Optimized ETF (ESGD US) saw net inflows of USD52 million, the largest in August.