ETFGI, an independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported December 30 that Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of US$2.66 billion during November.

Total assets invested in ESG ETFs and ETPs increased by 7.4% from US$48.75 billion at the end of October to a record US$52.35 billion, according to ETFGI’s November 2019 ETFs and ETPs ESG industry landscape insights report. 

Since the launch of the first ESG ETF/ETP in 2002, the iShares MSCI USA ESG Select ETF, the number and diversity of products has increased steadily. In November, 7 new ESG ETFs/ETPs were launched.

At the end of November, the Global ETF/ETP industry had 269 ETFs/ETPs, with 753 listings, from 71 providers on 29 exchanges in 58 countries. Europe leads with 118 ESG products and 54% of the assets.

Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered US$1.48 billion in November. JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF gathered US$201.25 million alone.

However, confusion persists around what constitutes an ESG fund. According to the Principles for Responsible Investment (PRI), a UN-supported initiative which seeks to understand the investment implications of ESG issues, 56% of adopters believe there remains a lack of clarity in ESG definitions.