The 2020 ESG ETF Surge

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Stockholm – According to data from TrackInsight, the global ETF market finished 2020 at a record high of US$7.6 trillion in assets under management (AUM), across 6,518 ETFs. Strong equity performance together with accelerating investor global inflows driven by ESG demand led to the record performance, despite the hurdles created by the pandemic.

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ESG ETFs grew by an extraordinary 223% during 2020, equivalent to US$97 billion of flows, to reach a new record of US$189 billion in AUM. Asset managers brought 200 new ESG ETFs to the market. ESG ETFs were also overrepresented among the top 10 best performing ETFs globally (excluding ETCs and Leveraged Funds), delivering triple-digit returns to investors over 2020.

“ETFs faced an acid test in 2020 and passed with flying colours,” Anaelle Ubaldino, Head of ETF Research and Investment Advisory at TrackInsight commented. “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. It’s also clear that 2020 was a long-awaited turning point for ESG ETFs with huge growth in this sector. As 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.”

Geographically, Asia-Pacific was the fastest-growing region with ETF assets rising by 28.7% to a new high of $689 billion, of which US$69 billion was new flow. European listed ETFs grew by 26.4% reaching a new record of US$1.3 trillion with US$138 billion of new flow and the North American market grew 24.1% reaching an all-time high of $5.6 trillion in AUM with $536 billion of new flows.

TrackInsight is a global Exchange-Traded Funds ETFs analysis platform, covering 6,500 ETFs, aimed at professional investors.  120,000 unique users and 9,000 qualified professional investors use the platform for their day-to-day ETF screening.

Image by Damon Holley from Pixabay

 

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