Among many takeaways from Inside ETFs 2018 this past week, one trend is clear. More people are interested in understanding investments with environmental, social and governance principles. At least three panels sessions were dedicated to this issue, with topics ranging from how to apply ESG overlay in traditional investment process, to how to construct climate resilience portfolios, to how to stay true to the ESG principles without sacrificing performance.
According to Purview Investments' research on ESG ETF products listed on the U.S. exchanges, there are over 40 self-labeled ESG ETFs. The AUM of these ETFs are still small, yet are growing at a rapid rate. When we concluded our first comprehensive research in June 2017, the AUM in this category was just about $3.1 billions. As of Friday, January 26, 2018, the AUM has grown to over $4.5 billions. The product variety has also increased in fixed income. Last June, there was only one fixed income ESG ETF, and since then, three more have been launched. Although Blackrock's iShares and State Street's SPDR still dominate the space, other firms are catching up, with different approaches on product lineups. For more details on research findings and Purview Impact Solutions ETF managed product, please contact Purview Investments, firstname.lastname@example.org.