Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of USD730 million during January, with total assets invested increasing by 9.97 per cent from USD22.47 billion at the end of December, to a record USD24.71billion.
That’s according to ETFGI’s January 2019 ETF and ETP ESG industry landscape insights report, an annual paid-for research subscription service.
“In January, equity markets rebounded from Q4 when global equities suffered steep declines amid persistent worries over trade and economic growth,” says Deborah Fuhr, managing partner and founder of ETFGI. “Fed chair Powell revised his stance on where he believes the neutral rate of interest lies, easing fears of a dramatic and painful tightening cycle. Energy’s decline during the Q4 rout subdued inflation in developed economies taking hiking pressure off central banks while provided stimulus to consumers and businesses, giving stronger core metrics. The S&P 500 finished January up 8.01 per cent, the best January since 1987, while the S&P Topix 150 gained 7.26 per cent and the S&P Europe 350 gained 6.23 per cent. Emerging and Frontier markets were up 7.77 per cent and 4.61 per cent respectively, hampered by dollar strength.”
At the end of January 2019, there were 210 ESG classified ETFs/ETPs, with 500 listings, assets of USD24.71 billion, from 61 providers listed on 26 exchanges in 23 countries. Following net inflows of USD730 Mn and market moves during the month, assets invested in ESG ETFs/ETPs listed globally increased 9.97 per cent, from USD22.47 billion at the end of December 2018, to USD24.71 billion.
Since the launch of the first ESG ETF/ETP in 2002, the iShares MSCI USA ESG Select ETF, the number and variety of products has increased steadily, with 210 ESG ETFs/ETPs listed globally at the end of January 2019. Two new ESG ETFs/ETPs were launched by two providers during January 2019.
Substantial inflows can be attributed to the top 20 ETFs/ETPs’s by net new assets, which collectively gathered USD888.50 million in January, the UBS ETF (LU) MSCI Emerging Markets Socially Responsible UCITS ETF (USD) A-dis (MSRUSA SW) gathered USD165.73 million alone.