ETFGI: ESG ETFs listed globally gathered 8.26 billion US dollars in net inflows during November 2022

ETFGI: ESG ETFs listed globally gathered 8.26 billion US dollars in net inflows during November 2022

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ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that Environmental, Social, and Governance (ESG) ETFs listed globally gathered US$8.26 billion in net inflows during November, bringing year-to-date net inflows for 2022 to US$69.37 billion which is much lower than the US$147.93 billion in year-to-date net inflows gathered in 2021.

During the month, total assets invested in ESG ETFs and ETPs increased by 10.6% from US$364 billion at the end of October 2022 to US$403 billion, according to ETFGI’s November 2022 ETF and ETP ESG industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service.

Highlights

  • Net inflows of $8.26 Bn into ESG ETFs listed globally during November.
  • YTD net inflows of $69.37 Bn in 2022 are the third highest on record, after YTD net inflows of
  • $147.93Bn in 2021 and YTD net inflows of $68.67 Bn in 2020.
  • 47th month of consecutive net inflows.
  • Assets of $403 Bn invested in ESG ETFs listed globally at the end of November.
  • Assets increased 0.1% YTD in 2022, going from $402.55 Bn at the end of 2021 to $403.12 Bn.

“The S&P 500 increased by 5.59 % in November but is down 13.10% YTD in 2022. Developed markets excluding the US increased by 10.63% in November but are down 15.67% YTD in 2022. Hong Kong (up 24.17%) and Netherlands (up 17.45%) saw the largest increases amongst the developed markets in November. Emerging markets increased by 13.26% during November but are down 16.86% YTD in 2022. China (up 27.38%) and Turkey (up 24.58%) saw the largest increases amongst emerging markets in November.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

There were 1,267 ESG ETFS listed globally, with 3,761 listings, assets of $403 Bn, from 216 providers listed on 44 exchanges in 33 countries. Following net inflows of $8.26 Bn and market moves during the month, assets invested in ESG ETFs listed globally increased by 10.6% from $364.40 Bn at the end of October 2022 to $403.12 Bn at the end of November 2022.

Since the launch of the first ESG ETF in 2002, the iShares MSCI USA ESG Select ETF, the number and diversity of products have increased steadily.  During November, 27 new ESG ETFs were launched.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $5.13 Bn in November. iShares MSCI Europe ESG Enhanced UCITS ETF (EEUD LN) gathered $580.89 Mn, the largest individual net inflow.

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.