Liquid Alternatives: How the Pandemic Could Affect ESG Investing (and ETFs)

The coronavirus pandemic throws up ESG in a new light.

Far from spelling doom for ESG investing, the pandemic may have given it fresh, positive potential. An article by Marlene Satter in benefitsPRO outlines nine ways the pandemic could affect ESG, yet launch it as the new normal in investing. And ESG ETFs could benefit from a fresh tailwind.

ESG investing may have changed forever, post-pandemic

According to Satter, the lockdowns have shown how curtailment of human activity affects the environment positively with pollution levels dramatically down in many parts of the world. Further, companies that stood by their employees during the crisis will gain respect and be rewarded. Satter also points out that new methods of working emerged such as online communication and remote working. On the other hand, the pandemic punished carbon-intensive industries such as airlines and other transports.

Satter makes a significant point that ESG ETFs have seen better fund flows during the last few weeks’ volatility—and much lower outflows, with just 8 percent of such flows compared with 25 percent of all others.

ESG ETFs held up better in the crisis

During the first quarter of 2020, 59% of U.S. ESG ETFs beat the S&P 500 Index, while 60% of European ESG ETFs outperformed the MSCI Europe Index, according to Zacks.

Surveys point out that over the next five years nearly a third of investors will allocate 11%-20% of their portfolio to ESG-focused ETFs. Further, it has been observed that approximately 95% of millennials tend to be socially responsible in their investing.

Here’s a look at some ESG focused ETFs that have outperformed the S&P500 during the first quarter:


ETF Ticker Tracking index Expense Ratio YTD Return
Global X Conscious Companies ETF NASDAQ: KRMA Concinnity Conscious Companies Index 0.43% -25.2%
iShares ESG MSCI USA Leaders ETF NASDAQ: SUSL MSCI USA Extended ESG Leaders Index 0.10% -21.3%
Nuveen ESG Mid-Cap Growth ETF BATS: NUMG TIAA ESG USA Mid-Cap Growth Index 0.40% -19.90%
SP Funds S&P 500 Sharia Industry Exclusions ETF NYSEARCA: SPUS S&P 500 Shariah Industry Exclusions Index 0.49% -18.1%


Related Story:        Liquid Alternatives: Lyxor’s New Suite of Climate Change ETFs                                           

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…