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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$1.06 Bn during October. Total assets invested ESG ETFs and ETPs fell 2.91% from US$22.5 Bn at the end of September, to US$21.85 Bn, according to ETFGI’s October 2018 ETF and ETP ESG industry landscape insights report, a new 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 fell 2.91% to $21.85 Bn by the end of October.
- ESG ETFs and ETPs listed globally gathered $1.06 Bn in net new assets during October.
- Year-to-date, ESG ETFs/ETPs assets have increased 25.9% compared to 2.5% for all ETFs/ETPs listed globally.
“Few markets managed to avoid the October sell off, as investors grew jittery at the prospects of further rate hikes from the US treasury and any hope of resolutions to trade disputes appeared to be diminishing, be it in Europe or the US. Developed and developing markets saw similar declines during the month. Aside from the US, where strong year-to-date performance cushioned the fall, October pushed many indices deeper into negative territory for the year. The S&P 500 fell 6.84% over the month, retaining a 3.1% gain year-to-date, while European markets fell 7.82%, bringing year-to-date decline to 9.56%. EM markets down 7.60% and Frontier markets down 3.36%, bringing year to date declines to 15.07% and 10.68%, respectively.” according to Deborah Fuhr, managing partner and a founder of ETFGI.
At the end of October 2018, there were 200 ESG classified ETFs/ETPs, with 447 listings, assets of $21.85 Bn, from 60 providers listed on 25 exchanges in 23 countries. Following net inflows of $1.06 Bn and market moves during the month, assets invested in ESG ETFs/ETPs listed globally decreased by 2.91%, from $22.5 Bn at the end of September 2018, to $21.9 Bn.
Global ESG ETF and ETP asset growth as at end of October 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 200 ESG ETFs/ETPs listed globally at the end of October. 62 new ESG ETFs/ETPs have launched during 2018, with 11 during October alone.
Substantial inflows during October can be attributed to the top 20 ESG ETFs/ETPs by net new assets, which collectively gathered $1.02 Bn. The BNP Paribas Easy MSCI Europe SRI (SRIE FP) gathered $787 Mn, the largest net inflow in October.
Top 20 ESG ETFs/ETPs by net new assets October 2018
| Name | Ticker | Assets (US$ Mn) Oct-18 |
ADV (US$ Mn) Oct-18 |
NNA (US$ Mn) YTD 2018 |
NNA (US$ Mn) Oct-18 |
| BNP Paribas Easy MSCI Europe SRI | SRIE FP | 17,037 | 230 | 1,437 | 787 |
| Think Sustainable World UCITS ETF | TSWE NA | 6,937 | 99 | 2,618 | 706 |
| BNP Paribas Easy MSCI EM SRI UCITS ETF Capitalisation | EMSR FP | 42,547 | 285 | 6,469 | 621 |
| iShares MSCI USA SRI UCITS ETF | SUAS LN | 14,899 | 253 | 213 | 595 |
| iShares MSCI EAFE ESG Optimized ETF | ESGD US | 34,792 | 157 | 2,236 | 519 |
| UBS ETF (LU) - MSCI EMU SRI UCITS ETF (EUR) A-dis | UIMR GY | 1,913 | 42 | 1,380 | 403 |
| BNP Paribas Easy Low Carbon 100 Europe UCITS ETF | ECN FP | 4,558 | 49 | 1,897 | 386 |
| iShares ESG US Aggregate Bond ETF | EAGG US | 6,157 | 82 | (404) | 367 |
| BNP Paribas MSCI Europe Small Cap ex Weap UCITS ETF | EESM FP | 741 | 16 | 371 | 298 |
| JPMorgan Global Research Enhanced Equity UCITS ETF | JREG LN | 691 | 15 | 447 | 258 |
| iShares MSCI EMU ESG Screened UCITS ETF - Acc | SAUM LN | 526 | 15 | 201 | 249 |
| BNP Paribas Easy MSCI KLD 400 US SRI UCITS ETF | EKLD FP | 8,660 | 67 | 872 | 219 |
| iShares MSCI Europe SRI UCITS ETF | IESE LN | 958 | 18 | 855 | 209 |
| Global X Adaptive US Factor ETF | AUSF US | 479 | 13 | 409 | 207 |
| iShares MSCI USA ESG Select ETF | SUSA US | 28,971 | 119 | 1,277 | 201 |
| SPDR SSGA Gender Diversity Index ETF | SHE US | 2,234 | 4 | 383 | 191 |
| iShares MSCI EM ESG Optimized ETF | ESGE US | 3,493 | 24 | 288 | 183 |
| Vanguard ESG US Stock ETF | ESGV US | 1,060 | 16 | 523 | 173 |
| Amundi Index MSCI USA SRI UCITS ETF DR | USRI FP | 297 | 1 | 173 | 153 |
| iShares MSCI ACWI Low Carbon Target ETF | CRBN US | 1,151 | 47 | 170 | 152 |
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.
