Assets invested in ESG ETFs globally have surged by 22.3% year-to-date, up from US$393.11 billion at the close of 2022 to $480.96 billion, according to ETF research firm ETFGI.
The report revealed that ESG ETFs recorded a net inflow of $6.04 billion in November alone, contributing to a year-to-date net inflow of $52.75 billion in 2023.
The report also highlighted the launch of 29 new ESG ETFs in November, underscoring the continued expansion and diversification of products in this sector since the inception of the first ESG ETF in 2002.
At the end of November 2023, the global ESG ETF industry comprised 1,457 ETFs with 4,369 listings, representing assets from 239 providers across 46 exchanges in 35 countries.
Substantial inflows were attributed to the top 20 ETFs/ETPs by net new assets, with the Xtrackers MSCI AC World ESG Screened UCITS ETF leading the way with the largest individual net inflow of $659.4 million in November.
The report also addressed the ongoing confusion surrounding ESG fund classifications, citing a lack of clarity in ESG definitions, citing a PRI (a UN-supported initiative) report revealing that 56% of adopters perceive a lack of clarity in ESG definitions.
Deborah Fuhr, managing partner, founder, and owner of ETFGI, commented: “The S&P 500 index is up 20.8% YTD in 2023. Developed markets, excluding the US index, is up 11.65% YTD in 2023, with Israel and Sweden seeing the largest decreases amongst the developed markets in November. The emerging markets index is up 6.98% YTD in 2023 with Egypt and Brazil seeing the largest increases amongst emerging markets in November.”
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