Global ESG ETF and ETP inflows experienced record year-to-date levels hitting US$108.73 billion, well above the US$41.47 billion gathered at this point last year and US$20.25 billion above the full year 2020 record net inflows of US$88.45 billion, new data from ETFGI revealed.
In August alone, ETFs and ETPs attracted net inflows of US$11.24 billion, marking the 66th consecutive month of net inflows.
Total assets invested in ESG ETFs and ETPs increased by 6.1 per cent from US$308 billion at the end of June 2021 to US$327 billion and 69 per cent YTD in 2021.
This upward trend mirrors growth patterns witnessed across the wider ETF and ETP space, with record assets and net inflows of US$9.73 trillion and US$834 billion recorded at the end of August, following 27 months of consecutive net inflows.
ETFs and ETPs popularity in Australia boosted
The Australian ETF sector advanced $6.3 billion in August to hit a new milestone, while the volume of ETPs listed on the ASX surged from $70.5 in August 2020 to $128.2 billion last month.
Kanish Chugh, head of distribution at ETF Securities, spoke to InvestorDaily earlier this month saying that the global growth in ETF and ETP popularity rests on several trends including an influx of younger generations into financial advice and other investment professions.
“Fifteen years ago, 10 years ago even, ETFs were a relatively unused investment vehicle,” Mr Chugh said.
A “steady adoption of ETFs from investment professionals over the past five or six years,” noted Mr Chugh, had increased the knowledge of ETF products and boosted their popularity, catapulting the industry forward in the last two years.
“The adoption of ETFs has had a rapid growth in the past two to three years.”
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
