ETF Scan: The Big Picture final - Page 15

In general , how are you approaching ESG in your portfolios ?
What is your view on ESG investing ?
10 . Investors want impact with ESG allocations
In general , how are you approaching ESG in your portfolios ?
ESG with climate / net-zero alignment
ESG only 18 %
ESG low tracking error
ESG high tracking error
ESG with impact / SDG
9 %
12 %
26 %
35 %
Interestingly , respondents want to see a high impact when investing sustainably . Some 35 % of investors surveyed said they want ESG exposure linked to either impact or the United Nations ’ 17 Sustainable Development Goals . This highlights the use case for thematic ETFs which can have targeted exposure to areas of the market such as clean energy , climate education or clean water . Meanwhile , 26 % of respondents said ESG with climate or net-zero alignment . This has been another recent trend in the ETF space as issuers have started combining the European Union ’ s climate benchmarks with ESG metrics .
11 . Investors are committed to ESG
What is your view on ESG investing ?
Results show exactly half of respondents are fully committed to ESG as a long-term trend while 44 % view ESG as “ important ” to their portfolios but they remain at an early stage with sustainable investing . ESG has exploded over the past two years aided by top down regulatory and government policy as highlighted by COP26 . The ETF space in Europe highlights just how quick investor uptake has been with ESG ETFs now housing € 172bn assets under management , as at the end of October , trebling the segment ’ s ETF market share in Europe to 12 % in two years , according to data from Morningstar .
We are committed , ESG investing is here for the long term
51 %
5 %
Interesting , but may be a passing trend
44 %
It ’ s important , but we are still at an early stage with ESG
ETF Scan : The Big Picture | 15