ETFGI Reports Environmental, Social, And Governance (ESG) ETFs And ETPs Listed Globally Gathered 7.54 Billion US Dollars In Net Inflows During February 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$7.54 billion during February, bringing year-to-date net inflows to US$14.30 billion which is higher than the US$2.40 billion gathered at this point last year. Total assets invested in ESG ETFs and ETPs increased by 4.93% from US$64.79 billion at the end of January 2020 to a new record US$67.99 billion, according to ETFGI’s February 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

• ESG ETFs and ETPs listed globally gathered $7.54 billion in net new assets at the end of February which is the 2^ndhighest monthly inflow on record.
• Assets in ESG ETFs and ETPs listed globally increased by 4.93% at the end of February 2020, to a new record of $67.99 billion.
• 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% as coronavirus cases continued to spread and the potential economic impact weighed on investors and the markets. Outside the U.S., the S&P Developed ex-U.S. BMI declined nearly 9.0%.  The S&P Emerging BMI lost 5.1% during the month. Global equities as measured by the S&P Global BMI ended down 8.1% with 49 of 50 included country indices down, while China gained 0.9%.”  According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

The Global ESG ETF/ETP industry had 293 ETFs/ETPs, with 805 listings, assets of $68 Bn, from 75 providers listed on 30 exchanges in 58 countries at the end of February. Following net inflows of $7.54 billion and market moves during the month, assets invested in ESG ETFs/ETPs listed globally increased by 4.93%, from $64.79 billion at the end of January 2020 to a record $67.99 billion.

Global ESG ETF and ETP asset growth as at end of February 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 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 $4.92 billion at the end of February, Ping An CSI New Energy Automobile Industry ETF (515700 CH) gathered $1.08 billion alone.

Top 20 ESG ETFs/ETPs by net new assets February 2020

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. Please contact deborah.fuhr@etfgi.com if you would like to discuss the cost to subscribe to any of ETFGI’s research or consulting services.