ESG-themed ETFs experience $9.2b in FUM
BetaShares has revealed that ETFs themed around ethical, responsible and sustainability concerns held $9.2 billion in funds under management (FUM) at the end of 2022.
Previously, the category sat at $7.5 billion in FUM at the start of 2022, demonstrating a $1.7 billion increase throughout the year.
The number of funds in the category had risen from 30 to 52, including 12 from BetaShares which had an FUM of $4.2 billion.
Greg Liddell, BetaShares responsible investments director, noted this growing interest in ESG-themed ETFs amongst investors.
“Investors and their financial advisers are increasingly drawn to ethical and responsible ETFs as they seek to align their portfolios with their values while also meeting their investment objectives,” he commented.
The director explained that the shift was increasing despite market volatility, as investors focused more on long-term outlooks for their portfolios.
Moreover, Liddell identified the increase in stewardship activities by fund managers as another trend of 2022.
He added: “It’s clear that the future of responsible investing will increasingly be about the ability to link investment and stewardship activity with positive outcomes.
“Climate change transition, biodiversity, diversity, and the empowerment of women are all topics of concern to a greater number of investors and will result in more impact and sustainability themed products in these areas.”
As more stakeholders concentrated on achieving results from their stewardship programs, it would become of increasing value to index investors, Liddell explained.
AUTHOR
Jasmine Siljic
Recommended for you
Perpetual has made a major announcement about its deal with KKR after an independent expert ruled it would not be in the best interest of shareholders.
According to Magellan, departing head of investment, Gerald Stack, has enacted a “textbook succession plan” which has helped reduce forecasted outflows from his infrastructure division.
Payton Capital has appointed a head of credit to its ranks, representing a key step in its growth strategy as it builds out its private credit platform under HMC Capital.
Nikko Asset Management has formed a joint venture with an Asian private asset manager, the latest in a series of alternatives deals by fund managers.
