ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of US$856 Mn during November. Total assets invested ESG ETFs and ETPs increased by 6.64% from US$21.77 Bn at the end of October, to US$23.22 Bn, according to ETFGI’s November 2018 ETF and ETP ESG industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
- Total Assets invested in ESG ETFs and ETPs listed globally rose 6.64% to $23.22 Bn by the end of November.
- ESG ETFs and ETPs listed globally gathered $856 Mn in net new assets during November.
- Year-to-date, ESG ETFs/ETPs assets have increased 33.8% compared to 4.6% for all ETFs/ETPs listed globally.
“While trade talks continue to make noise in the headlines, the very real prospect of slowing global growth appears to be filtering into market sentiment. A seemingly more reposed approach to monetary policy along with the China-US trade truce provided enough of a tailwind to lift US markets to finish in the green by the end of November, with the S&P 500 gaining 2.04% over the month bringing the year-to-date gain to 5.11%. Apart from the Eurozone, where various domestic issues continue to dominate, most developed markets closed the month with marginal gains, the S&P developed ex-US BMI was up 0.17% in November with year-to-date declines of 9.66%. EM and Frontier markets bounced back from the October fall, finishing up 4.61% and 1.94% respectively, softening year-to-date declines to 11.15% and 8.95%” according to Deborah Fuhr, managing partner and a founder of ETFGI.
At the end of November 2018, there were 204 ESG classified ETFs/ETPs, with 473 listings, assets of $23.22 Bn, from 62 providers listed on 25 exchanges in 23 countries. Following net inflows of $856 Mn and market moves during the month, assets invested in ESG ETFs/ETPs listed globally increased by 6.64%, from $21.77 Bn at the end of October 2018, to $23.22 Bn.
Global ESG ETF and ETP asset growth as at end of November 2018
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 205 ESG ETFs/ETPs listed globally at the end of November. 66 new ESG ETFs/ETPs have launched during 2018, with 4 during November alone.
Substantial inflows during November can be attributed to the top 20 ESG ETFs/ETPs by net new assets, which collectively gathered $873 Mn in during November. The UBS ETF (LU) MSCI World Socially Responsible UCITS ETF (UIMM GY) gathered $140 Mn, the largest net inflow in November.
Top 20 ESG ETFs/ETPs by net new assets November 2018
| Name | Ticker | Assets (US$ Mn) Nov-18 |
ADV (US$ Mn) Nov-18 |
NNA (US$ Mn) YTD 2018 |
NNA (US$ Mn) Nov-18 |
| UBS ETF (LU) MSCI World Socially Responsible UCITS ETF (USD) A-dis | UIMM GY | 823 | 2 | 277 | 140 |
| iShares MSCI EM ESG Optimized ETF | ESGE US | 437 | 3 | 313 | 82 |
| OSSIAM US MINIMUM VARIANCE ESG NR UCITS | MVUS FP | 192 | 0 | (90) | 68 |
| iShares MSCI USA ESG Select ETF | SUSA US | 845 | 5 | 181 | 67 |
| iShares MSCI Europe SRI UCITS ETF | IESE LN | 444 | 0 | 47 | 64 |
| BNP Paribas Easy Low Carbon 100 Europe UCITS ETF | ECN FP | 489 | 1 | 321 | 59 |
| BNP Paribas Easy Msci Europe SRI | SRIE FP | 256 | 0 | 262 | 45 |
| iShares MSCI USA SRI UCITS ETF | SUAS LN | 456 | 0 | 352 | 43 |
| UBS ETF (LU) MSCI Japan Socially Responsible | FRCJ GY | 259 | 0 | 189 | 42 |
| Vanguard ESG US Stock ETF | ESGV US | 69 | 4 | 64 | 42 |
| UBS (Irl) ETF plc - MSCI ACWI Socially Responsible | AWSRIE SW | 88 | 1 | 93 | 31 |
| iShares MSCI EAFE ESG Optimized ETF | ESGD US | 450 | 4 | 353 | 31 |
| UBS (Irl) ETF plc - MSCI ACWI Socially Responsible | AWSRIS SW | 139 | 1 | 148 | 29 |
| BNP Paribas Easy MSCI KLD 400 US SRI UCITS ETF | EKLD FP | 83 | 0 | 78 | 25 |
| SI Ucits Etf-UC Msci European Green Bond EUR | ECBI GY | 23 | 0 | 23 | 23 |
| iShares MSCI KLD 400 Social ETF | DSI US | 1,233 | 8 | 189 | 20 |
| Vanguard ESG International Stock ETF | VSGX US | 42 | 2 | 28 | 19 |
| iShares MSCI World SRI UCITS ETF | SUWS LN | 57 | 0 | 52 | 16 |
| iShares MSCI EM IMI ESG Screened UCITS ETF - Acc | SAEM LN | 25 | 0 | 24 | 15 |
| One ETF ESG | 1498 JP | 92 | 0 | 26 | 14 |
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.
