Those landmarks include outperforming traditional equity benchmarks and a prolific pace of asset gathering.
“Assets invested in ESG (Environmental, Social, and Governance) ETFs and ETPs reached a new milestone of US$187 billion at the end of 2020. Assets invested in ESG ETFs and ETPs increased by 206% in 2020,” according to ETFGI, a London-based ETF research firm.
Flows to ESG ETFs accelerated late in 2020.
“During December ESG ETFs and ETPs gathered net inflows of US$18.46 billion during, bringing 2020 net inflows to US$88.95 billion which significantly greater than the US$27.79 billion gathered in 2019,” adds ETFGI.
ESG Excellence Gaining Steam
FlexShares’ ESG seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX® USA ESG Impact Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to ESG characteristics rela
With 2020 nearly over, it pays to examine some of the factors driving increased adoption of ESG ETFs this year.
“Two unforeseen events, the global pandemic and the murder of George Floyd underscored the importance of the stakeholder-capitalism model, which focuses on creating sustainable long-term value that serves all stakeholders and creates positive societal impacts,” writes Morningstar analyst Jon Hale. “This, more than anything, is the ultimate purpose of sustainable investing: to weigh in with investment capital in support of the stakeholder model.”
FlexShares’ ESG seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX® USA ESG Impact Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to ESG characteristics relative to the STOXX® USA 900 Index, a float-adjusted market-capitalization weighted index of U.S.-
FlexShares’ ESG seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX® USA ESG Impact Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to ESG characteristics relative to the STOXX® USA 900 Index, a float-adjusted market-capitalization weighted index of U.S.- incorporated companies. Under normal circumstances, the fund will invest at least 80% of its total assets in the securities of the underlying index.
“This year investors have put a record $27.4 billion into ETFs traded in U.S. markets that say they focus on environmental, social and corporate governance, or ESG, practices, according to data from FactSet, doubling the size of the sector,” reports Michael Wursthorn for the
That enthusiasm is being met with impressive returns and data confirming that companies that take environmental responsibility do reward investors.
“The number of major companies who’ve disclosed their environmental impact and aggressively committed to reducing it has increased 46% from last year, according to a new analysis by a leading environmental-disclosure platform,” reports Todd Gillespie for
FlexShares’ ESG seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX® USA ESG Impact Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to ESG characteristics relative to the STOXX® USA 900 Index, a float-adjusted market-capitalization weighted index of U.S.- incorporated companies. Under normal circumstances, the fund will invest at least 80% of its total assets in the securities of the underlying index.