ETF investors want impact with ESG allocations, survey finds
Investors are aligning themselves with the United Nations Sustainable Development Goals (SDGs) when allocating to ESG, according to a survey conducted by ETF Stream and Amundi.
The survey of 105 investors across Europe, which featured in a report of initial findings titled ETF Scan: The Big Picture, found 35% of respondents said they want ESG exposure linked to either impact or the 17 SDGs, the most across all responses.
This highlights the use case for thematic ETFs which can offer targeted exposure to areas of the market such as clean energy, climate, education and clean water.
Inflows into thematic ETFs have surged over the past two years. They now total over $40bn assets under management (AUM) across 81 ETFs, up from under $10bn at the end of 2019, according to data from Global X.
Meanwhile, pension funds have started partnering with issuers and index providers to launch strategies targeting certain SDGs that are aligned with their beliefs and values.
Some 26% of respondents said they are looking for ESG with climate or net-zero alignment. This has been another recent trend in the ETF space with issuers starting to combine the European Union’s climate benchmarks with ESG metrics.
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