(Nasdaq) - ESG ETFs, like their non-ESG peers, are not immune to the downturn in global markets. After ending last year with combined assets under management (AUM) of $422 billion, the total ESG ETFs AUM dropped by -10% to settle at $381 billion in the first week of March 2022. The geopolitical turmoil caused by the Russia-Ukraine war — coupled with the changing macroeconomic landscape — have weighed down on the performance of ESG assets.
However, ESG conviction remains strong with investors adding over $17 billion into ESG ETFs in the first two months of the year.
Most and least popular ESG ETFs in America year-to-date
In America, ESG investors added net inflows of $3.25 billion into ESG ETFs. Among the biggest receiving funds are iShares ESG Aware MSCI EM ETF (ESGE, +$678 million), BMO MSCI USA ESG Leaders Index ETF - CAD (ESGY, +$597 million), and Vanguard ESG U.S. Stock ETF (ESGB, +$430 million). On the other hand, Xtrackers MSCI U.S.A. ESG Leaders Equity ETF (USSG, -$631 million), BMO MSCI USA ESG Leaders Index ETF - CAD Hedged (ESGY.F, -$603 million), and Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL , -$375 million) were among the biggest flow dispensers.
By Rony Abboud
MAR 9, 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
