ETFGI Reports Assets Invested In ESG ETFs And ETPs Listed Globally Reached A Record Of US$246 Billion At The End Of Q1 2021

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that ESG (Environmental, Social, and Governance) ETFs and ETPs listed globally gathered net inflows of US$15.08 billion during March, bringing year-to-date net inflows to a record US$55.84 billion which is much higher than the US$15.80 billion gathered at this point last year as well as the prior record of US$41.16 Bn gathered in Q1 2020. Total assets invested in ESG ETFs and ETPs increased by 6.9% from US$231 billion at the end of February 2021 to US$246 billion, according to ETFGI’s March 2021 ETF and ETP ESG industry landscape insights report, a monthly report which is part of 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 record of $246.46 Bn at the end of Q1 2021.
Net inflows of $15.08 billion gathered during March
YTD Q1 NNA of $55.84 Bn is a record beating the prior record of $41.16 Bn gathered in Q1 2020.

“The S&P 500® gained 4.4% in March and 6.2% in Q1, supported by the increasing pace of COVID-19 vaccinations and continued monetary and fiscal support. Global equities gained 2.5% in March and 5.2% in Q1, as measured by the S&P Global BMI. 38 of the 50 countries advanced during the month and 35 were positive at the end of Q1. Developed markets ex-U.S. gained 2.3% in USD terms in March and 4.0% in Q1. Emerging markets were down 1.6% in USD terms in March and up 2.8% in Q1, as measured by the S&P Emerging BMI. “ According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

There were 578 ESG ETFs and ETPs, with 1,673 listings, assets of US$246.46 Bn, from 129 providers listed on 36 exchanges in 29 countries at the end of Q1 2021.

Global ESG ETF and ETP asset growth as at end of March 2021

ESG_ETF)_ETP_Global_Q1_21

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 578 ESG ETFs/ETPs and 1,673 listings globally at the end of March 2021.
During February, 46 new ESG ETFs/ETPs were launched.

Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered $7.96 Bn in March. The iShares Edge MSCI USA Minimum Volatility ESG UCITS ETF - Acc (MVEA NA) gathered $1.05 Bn the largest NNA for the month.

Top 20 ESG ETFs/ETPs by net new assets March 2021

Name	Ticker	Assets (US$ Mn) Mar-21	NNA (US$ Mn) YTD-21	NNA (US$ Mn) Mar-21
iShares Edge MSCI USA Minimum Volatility ESG UCITS ETF - Acc	MVEA NA	1,443.69	1,059.64	1,050.66
BMO MSCI USA ESG Leaders Index ETF	ESGY/F CN	987.61	961.72	958.13
iShares Trust iShares ESG Aware MSCI USA ETF	ESGU US	15,401.86	1,315.71	835.22
Quadratic Interest Rate Volatility and Inflation ETF	IVOL US	2,611.41	1,626.09	570.29
Deka MSCI USA Climate Change ESG UCITS ETF	D6RQ GY	654.26	509.46	427.76
Invesco MSCI USA ESG Universal Screened UCITS ETF - Acc	ESGU LN	527.16	393.74	367.86
BMO MSCI USA ESG Leaders Index ETF	ESGY CN	363.67	330.83	325.34
iShares ESG MSCI EAFE ETF	ESGD US	5,011.04	866.21	309.18
Xtrackers MSCI Japan ESG UCITS ETF - 1C - Acc	XZMJ LN	1,911.66	557.71	304.70
iShares MSCI USA SRI UCITS ETF - Acc	SUAS LN	5,958.80	771.73	292.38
iShares EUR Corp Bond 0-3yr ESG UCITS ETF	SUSS LN	1,911.38	757.52	290.46
Xtrackers MSCI World ESG UCITS ETF - 1C - Acc	XZW0 LN	1,821.72	467.63	282.56
Invesco Global Clean Energy UCITS ETF - Acc	GCLX LN	2.48	275.41	275.41
iShares MSCI USA ESG Screened UCITS ETF - Acc - Acc	SASU LN	3,370.00	1,337.09	271.49
CSIF IE MSCI USA ESG Leaders Blue UCITS ETF - Acc	USESG SW	1,568.95	276.76	257.75
Fidelity Sustainable USD EM Bond UCITS ETF - GBP Hdg Acc	FEMP LN	248.07	246.74	246.74
iShares Global Clean Energy ETF	ICLN US	5,456.83	2,071.96	246.48
iShares MSCI USA ESG Enhanced UCITS ETF - Acc	EDMU GY	2,049.34	663.21	225.63
Vanguard ESG US Stock ETF	ESGV US	3,837.69	697.12	224.08
Fidelity Sustainable Global Corporate Bond Multifactor UCITS ETF - GBP Hdg Acc	FSMP LN	194.18	194.33	194.33

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.