Assets invested in Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally reached a record of USD280 billion at the end of May 2021, according to ETFGI’s May 2021 ETF and ETP ESG industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service.
ESG ETFs and ETPs listed globally gathered net inflows of USD6.54 billion during May, bringing year-to-date net inflows to USD73.95 billion which is much higher than the USD26.42 billion gathered at this point last year. Total assets invested in ESG ETFs and ETPs increased by 4.1 per cent from USD269 billion at the end of April 2021 to USD280 billion.
“The S&P 500 gained 0.7 per cent in May and 12.62 per cent YTD, with positive figures for four consecutive months. Developed markets ex-U.S. gained 3.11 per cent in May. Austria 8.29 per cent and Luxembourg 8.12 per cent were the leaders for the month while New Zealand lost the most at 3.92 per cent. Emerging markets were up 2.58 per cent at the end of May. Hungary (up 15.54 per cent) and Poland (up 13.98 per cent) were the leaders, whilst Egypt (down 3.86 per cent), Chile (down 3.64 per cent), and Malaysia (down 2.79 per cent) were down the most.” Says Deborah Fuhr, managing partner, founder and owner of ETFGI.
The Global ESG ETF/ETP had 620 ETFs/ETPs, with 1,834 listings, assets of USD280 billion, from 139 providers on 37 exchanges in 30 countries. Following net inflows of USD6.54 billion and market moves during the month, assets invested in ESG ETFs/ETPs listed globally increased by 4.1 per cent from USD269 billion at the end of April 2021 to USD280 billion at the end of
May 2021.
Since the launch of the first ESG ETF/ETP in 2002, the iShares MSCI USA ESG Select ETF, the number and diversity of products have increased steadily, with 620 ESG ETFs/ETPs and 1,834 listings globally at the end of May 2021. During May, 18 new ESG ETFs/ETPs were launched.
Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered USD4.03 billion in May. iShares Trust iShares ESG Aware MSCI USA ETF (ESGU US) gathered USD417 million he largest net inflows.