Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of USD7.54 billion during February, bringing year-to-date net inflows to USD14.30 billion which is higher than the USD2.40 billion gathered at this point last year.Total assets invested in ESG ETFs and ETPs increased by 4.93 per cent from USD64.79 billion at the end of January 2020 to a new record USD67.99 billion, according to ETFGI’s February 2020 ETF and ETP ESG industry landscape insights report, an annual paid-for research subscription service.
Europe leads with the most ESG classified products available, followed by the US and APAC (ex-Japan).
“At the end of February, the S&P 500 was down 8.2 per cent as coronavirus cases continued to spread and the potential economic impact weighed on investors and the markets,” says says Deborah Fuhr, managing partner, founder and owner of ETFGI. “Outside the US, the S&P Developed ex-US BMI declined nearly 9.0 per cent. The S&P Emerging BMI lost 5.1 per cent during the month. Global equities as measured by the S&P Global BMI ended down 8.1 per cent with 49 of 50 included country indices down, while China gained 0.9 per cent.”
The Global ESG ETF/ETP industry had 293 ETFs/ETPs, with 805 listings, assets of USD68 billion, from 75 providers listed on 30 exchanges in 58 countries at the end of February. Following net inflows of USD7.54 billion and market moves during the month, assets invested in ESG ETFs/ETPs listed globally increased by 4.93 per cent, from USD64.79 billion at the end of January 2020 to a record USD67.99 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 293 ESG ETFs/ETPs and 805 listings globally at the end of February 2020. During February, 10 new ESG ETFs/ETPs were launched.
Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered USD4.92 billion at the end of February, Ping An CSI New Energy Automobile Industry ETF (515700 CH) gathered USD1.08 billion alone.