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NEWSLETTER | 19 Mar 2021

ESG gains regulatory requirements both sides of the pond

This week saw Texas-based Bob Smith of Sage Advisory and UK-based John Willis of Planet Trackers comment on the differing approach to regulating ESG investing from the US and Europe. Smith agrees with the effort to help prevent ‘greenwashing’ or what he calls ‘bait & switch style’ techniques that could result in poor or unintended outcomes for investors, as evidenced by the announcement from the SEC, while Willis comments that this is catch-up compared to the EU which is presently the rule-setter on ESG and sustainability issues.

Planet Tracker is back again this week with its survey and report revealing ETFs and mutual funds on investment websites are failing to meet customers’ sustainability requirements.

The big profile this week and one that again puts ESG ‘front and centre’ is of Arne Noack, the new Head, Systematic Investment Solutions, America for DWS. "The one thing that is important for us is how far sustainable and ESG-related investing is front and centre to everything we do," Noack says. DWS saw record inflows of USD1 billion USD into its ESG ETFs in 2020.

And let’s just take a look at those ETF inflows: ETF assets now stand at USD8.3 trillion and BlackRock reported global ETP Flows for February marked the largest inflow month for global ETPs on record, with USD131.7 billion added, beating the previous record set in November 2020 (USD126.5 billion). Investor confidence lay behind the boost, according to Amundi, who noted in their ETF inflows report, that US equities fared the best.

Finally, we have an interview with SS&C ALPS Advisor’s Laton Spahr and Blue Tractor’s Simon Goulet on their recent launch which saw a number of firsts: the first Blue Tractor semi-transparent ETF and the first semi-transparent ETF on Nasdaq. ALPS Active REIT ETF is managed by REIT specialist firm, GSI Capital Advisors.

Innovation and inflows – where will the ETF industry go next?

Beverly Chandler
Managing Editor, ETF Express

Companies in this issue
Amundi
BlackRock
Blue Tractor
DWS
FlexShares
GSI Capital Advisors
Invesco
Lyxor
Nasdaq
Planet Tracker
SS&C ALPS Advisors
Sage Advisory
UBS Asset Management
VanEck

Global assets invested in ETFs and ETPs hit a new record of USD8.30 trillion at the end of February 2021

Thu | 18 Mar 2021, 14:16

Assets invested in ETFs and ETPs listed around the world reach a new record of USD8.30 trillion at the end of February. having gathered the highest ever monthly net inflows of USD139.46 billion during the month, bringing year-to-date net inflows to a record level of USD222.54 billion.

Thu | 18 Mar 2021, 14:16

The majority (75 per cent) of European institutional investors and wealth managers expect foreign investment into Chinese equities to increase in Q1 2021, compared to Q4 of 2020, while one fifth expect it to remain the same.

Thu | 18 Mar 2021, 14:16

SS&C ALPS Advisors has seen its assets grow to USD16 billion since late last year and has added a new product to its diversified range of offerings.

Thu | 18 Mar 2021, 14:16

In Europe, March has seen the introduction of the Sustainable Finance Disclosure Regulations (SFDR), that mandate greater transparency for ESG funds, requiring fund groups to provide information about the ESG risks in their portfolios.

Thu | 18 Mar 2021, 14:16

Financial think tank, Planet Tracker, says that retail investment websites are failing to meet customers’ sustainability requirements, having published a review of 22 investment websites that found that not one provided retail investors with the means of excluding deforestation risk from their search.

Thu | 18 Mar 2021, 14:16

It’s been all change at DWS with the announcement of Manooj Mistry’s recent move from his role as global head of Index Investing at DWS to join European white labeller HANetf.

Thu | 18 Mar 2021, 14:16

Amundi has published its overview of February’s global ETF flows, revealing that investor optimism improved over the month, causing global ETF in-flows to rise by EUR122.2 billion.

Thu | 18 Mar 2021, 14:16

BlackRock reports that global ETP Flows for February marked the largest inflow month for global ETPs on record, with USD131.7 billion added, beating the previous record set in November 2020 (USD126.5billion).

Global ETF launches 11-18.03.21

Thu | 18 Mar 2021, 14:16

This week’s launches include a raft of ESG focused ETFs. UBS Asset Management debuted a climate neutral UCITS fund applying sustainability criteria to the S&P 500 equity universe, and Invesco launched the first ETF tracking the new FTSE All Share ESG Climate index. FlexShares and Lyxor International Asset Management both listed two new ESG ETFs on Xetra and Borse Frankfurt. Elsewhere, VanEck expanded its global offering into the Latam market with a new ETF in Peru – the Fondo Bursátil VanEck El Dorado Perú ETF. Another newcomer in the US was the Hartford Fund’s HLGE ETF, providing access to the 'longevity economy'.

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