ESG ETFs have registered record inflows in recent months, but can they do enough to enact real change?
Assets in sustainable exchange-traded funds (ETFs) rocketed to record highs last year as coronavirus boosted investor interest in ESG strategies.
Cash held globally in ESG ETFs nearly tripled over the 12 months to the end of January to $196bn (£141bn), according to TrackInsight, with monthly inflows hitting a record $15.7bn early this year.
Our Chief Impact Officer Amy Clarke spoke to Wealth Manager about some key characteristics associated with some ESG ETFS that need to be considered if ETFs are to be deemed additive to the impact investing industry in the future.
ESG and impact data is improving but it still suffers quality issues, as well as issues pertaining to coverage. The data is not yet at a point where we can rely exclusively on it to make informed and accurate decisions as to the current and future strategy of a businessAmy Clark, Chief impact Officer