As the worldwide trade traded fund market collected $7.6 trillion in complete belongings beneath ad
As the worldwide trade traded fund market collected $7.6 trillion in complete belongings beneath administration over 2020, actively managed and ESG ideas stood supreme.
In response to TrackInsight knowledge, world traders funneled $80 billion in web inflows to Lively ETFs, which grew by 55%, hitting a brand new excessive of $273.5 billion in belongings. With nearly 200 new Lively ETF launches in 2020, there are actually over 1,052 listed Lively ETFs on world exchanges.
In the meantime, ESG ETFs reached a tipping level in 2020, experiencing 223% development over the 12 months, with a brand new document of $189 billion in complete belongings beneath administration. ESG ETFs attracted $97 Billion in web inflows over 2020 and nearly 200 new ESG ETFs launched throughout the identical interval. Trying forward, the ESG theme is ready to change into a brand new battleground for issuers over 2021.
ESG and Lively ETFs additionally stood out by way of general efficiency. 5 of the highest 10 greatest performing non-leveraged ETFs globally adopted an ESG method, and three of the highest 10 tracked energetic methods. All of them delivered triple-digit returns to traders over 2020.
“ETFs confronted an acid check in 2020 and handed with flying colors. The super development we have now witnessed demonstrates how ETFs have efficiently satisfied traders of the advantages of a liquid, tradable and clear product – particularly throughout unstable markets. It’s additionally clear that 2020 was a long-awaited turning level for ESG ETFs with enormous development on this sector. With competitors for doubtlessly Trillions of {dollars} of recent ESG belongings heating up, we count on to see extra issuers enter the ESG ETF market over 2021,” Anaelle Ubaldino, Head of ETF Analysis and Funding Advisory at TrackInsight, mentioned in a notice.
All areas of the world skilled double-digit development charges over 2020. Asia-Pacific was the quickest rising area with ETF belongings surging by 28.7% to a brand new excessive of $689 billion, with $69 billion in new flows. European listed ETFs expanded by 26.4%, hitting a brand new document of $1.three Trillion with $138 billion in new web influx. In the meantime, the North American market grew 24.1% to an all-time excessive of $5.6 trillion in belongings, with $536 billion in new inflows.
For extra information, data, and technique, go to the ESG Channel.
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