ETFGI reports assets invested in Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally reached a new record of US$82 billion at the end of May 2020
Q1 2020 hedge fund letters, conferences and more
LONDON — June 25, 2020 — 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$4.33 billion during May, bringing year-to-date net inflows to US$28.53 billion which is significantly more than the US$7.19 billion gathered at this point last year. Total assets invested in ESG ETFs and ETPs increased by 10.4% from US$74.03 billion at the end of April 2020 to reach a new record of US$82 billion at the end of May, according to ETFGI’s May 2020 ETF and ETP 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 reached a new record of $82 Bn.
- YTD through end of May, ETF/ETP listed globally gathered a record level of net inflows of $28.53 Bn
- Europe leads with the most assets and largest number of ESG products, followed by the US and APAC (ex-Japan).
“The S&P 500 gained 4.8% in May and remains only 5.0% down from its level at the beginning of the year, as markets anticipated relief from a COVID-19-driven economic slowdown. Developed markets outside the U.S. were also up 4.8% for the month with Sweden (up 9.9%) and Germany (up 9.2%) the top performers, while Hong Kong (down 7.7%), was the only market to be down for the month due to recent political turmoil. Emerging markets lagged during the month, gaining 1.3% as the economic impact of virus shutdowns remains somewhat more uncertain compared to developed regions.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.
The Global ESG ETF/ETP industry had 341 ETFs/ETPs, with 937 listings, assets of $82 Bn, from 82 providers on 31 exchanges in 27 countries.
Global ESG ETF and ETP asset growth as at end of May 2020
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 341 ESG ETFs/ETPs and 937 listings globally at the end of May 2020.
During May, 66 new ESG ETFs/ETPs were launched.
Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered $3.32 Bn at the end of May, iShares ESG MSCI USA ETF (ESGU US) gathered $558.10 Mn alone.
Top 20 ESG ETFs/ETPs by net new assets May 2020
| Name | Ticker | Assets
(US$ Mn) May-20 |
NNA
(US$ Mn) YTD-20 |
NNA
(US$ Mn) May-20 |
| iShares ESG MSCI USA ETF | ESGU US | 7,335.70 | 5,689.13 | 558.10 |
| Xtrackers MSCI USA ESG Leaders Equity ETF | USSG US | 2,259.08 | 607.78 | 497.42 |
| Xtrackers ESG MSCI Japan UCITS ETF | XZMJ LN | 481.62 | 310.67 | 340.37 |
| iShares ESG MSCI USA Leaders ETF | SUSL US | 2,268.65 | 493.40 | 314.31 |
| iShares MSCI Europe SRI UCITS ETF – Acc | IESG LN | 1,652.40 | 679.57 | 217.67 |
| iShares MSCI USA SRI UCITS ETF – Acc | SUAS LN | 2,526.54 | 690.51 | 182.10 |
| iShares ESG MSCI EM ETF | ESGE US | 3,167.83 | 2,611.96 | 161.75 |
| UBS Irl ETF PLC - MSCI USA Socially Responsible UCITS ETF | 4UBK GY | 151.09 | 139.50 | 139.50 |
| iShares ESG MSCI EAFE ETF | ESGD US | 2,207.72 | 907.19 | 101.20 |
| UBS Irl ETF plc - S&P 500 ESG UCITS ETF – Dis | S5SD GY | 201.74 | 153.87 | 90.25 |
| iShares MSCI World SRI UCITS ETF - EUR - Acc – Acc | SUSW LN | 1,149.35 | 502.09 | 86.38 |
| Xtrackers II ESG EUR Corporate Bond UCITS ETF DR | XB4F GY | 545.56 | 108.14 | 84.55 |
| Vanguard ESG US Stock ETF | ESGV US | 1,424.91 | 547.88 | 82.03 |
| iShares MSCI EM IMI ESG Screened UCITS ETF - Acc – Acc | SAEM LN | 528.84 | 201.08 | 79.37 |
| AMUNDI INDEX MSCI EUROPE SRI - UCITS ETF DR (C) – Acc | EUSRI FP | 794.66 | 558.03 | 71.67 |
| iShares Euro Corp Bond SRI UCITS ETF | SUOE LN | 1,134.94 | 113.06 | 71.19 |
| UBS ETF (LU) - MSCI EMU Socially Responsible UCITS ETF (EUR) ACC | EMUSRI SW | 614.89 | 215.69 | 66.78 |
| iShares MSCI USA ESG Select ETF | SUSA US | 1,428.65 | 251.78 | 63.16 |
| BNP Paribas Easy EUR Corp Bond SRI Fossil Free – Acc | SRIC FP | 129.64 | 89.85 | 62.02 |
| iShares MSCI USA ESG Screened UCITS ETF – Dist | SDUS LN | 110.44 | 65.11 | 58.95 |
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.
Article by ETFGI
