One third of net inflows to ETFs in Europe so far in 2022 has been into ESG products
ETFs (Exchange Traded Funds) are gaining ground. Used for a long time by institutional investors, these investment solutions are also becoming increasingly attractive to individuals.
- ETFs in Europe account for assets under management of almost USD 1.4 trillion and inflows of more than USD 63 billion year-to-date[1].
- Environmental, Social & Governance (‘ESG’) ETFs are still on the rise, generating one third of net inflows between January and May 2022[2].
- ETFs incorporating ESG criteria currently represent 16% of all ETFs in Europe, and according to a recent pan-European survey by BNPP AM[3], 91% of participants expect this level to grow or remain stable over the next 12 months. Investors surveyed were increasingly interested in thematic ETFs, particularly in Switzerland (72%) and the UK (68%), with the circular economy (61%) proving to be the most popular theme.
Bertrand Alfandari, Head of Development for ETFs & Index Funds at BNP Paribas Asset Management
“ESG ETFs continue to grow, with Europe playing a leading role as it represents almost half of the products listed in the world, 60% of the assets and around two-thirds of the inflows[4]. The development of ESG offerings in the ETF market has been very rapid in Europe, with ESG ETF inflows more than doubling in 2021.”