Alternative Investments/Digital: AUM At Global ESG ETFs Surged To Record In 2020 (TrackInsight)

ESG ETF assets globally nearly tripled in 2020.

Data from the global ETF analysis platform TrackInsight shows that ESG ETF assets across the world grew 223% year-on-year to scale a new record of US$189 billion in 2020. Nearly 200 new ESG ETFs were launched during the year, and total inflows into ESG ETFs were US$97 billion. (TrackInsight)

In terms of overall performance, 5 of the top 10 best performing ETFs globally (excluding ETCs and Leveraged Funds) following an ESG approach.

“2020 was a long-awaited turning point for ESG ETFs with huge growth in this sector,” said Anaelle Ubaldino, head of ETF Research and Investment Advisory at TrackInsight. “With competition for potentially trillions of dollars of new ESG assets heating up, we expect to see more issuers enter the ESG ETF market over 2021.”

TrackInsight: Global ETF statistics

As of the end of 2020, 6,518 ETFs held an AUM of US$7.6 trillion. This too was a record that reflected rising investor inflows and a robust show from equity markets.

Significantly, despite COVID and the accompanying market volatility, ETF assets in all regions of the world grew in double digits during 2020.

Region ETF AUM (US$) Growth %
Asia-Pacific 689 billion 28.7
Europe 1.3 trillion 26.4
North America 5.6 trillion 24.1

Ubaldino commented: “ETFs faced an acid test in 2020 and passed with flying colors. The tremendous growth we have witnessed demonstrates how ETFs have successfully convinced investors of the benefits of a liquid, tradable, and transparent product – especially during volatile markets.”

Active ETFs the other hot growth segment

Aside from ESG ETFs, actively managed ETFs also put up a strong show in 2020.

AUM of active ETFs shot up to a new high of US$273.5 billion, pushed up by inflows that surged 55% to $80 billion.

In terms of overall performance, 3 out of the top 10 performing ETFs followed an active strategy.

Related Story:   Morgan Stanley UK Launches Sustainable Fixed Income Opportunities Fund                                               

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