ETFs see popularity for sustainable products
Two sustainable exchange traded funds (ETFs) were among the most popular products during July, highlighting investors’ increased interest in ethical and sustainable vehicles.
According to a monthly review by BetaShares, the Global Sustainability Leaders ETF saw inflows of $96.2 million while the Australian Sustainability Leaders ETF saw inflows of $41.8 million. A currency hedged version of the Global Sustainability Leaders fund was also launched during the month.
“In recent times, climate and decarbonisation have been the key themes for sustainable-minded investors, but we believe that the pandemic has also brought social and governance strongly into focus,” the firm said.
“We think there is, and will continue to be, an increased focus on social responsibility, and that investors will favour companies that demonstrate an appropriate weighting to social and governance considerations, rather than a ‘profit above all else’ attitude.”
According to data from FE Analytics, within the Australian Core Strategies universe, the Global Sustainability Leaders fund returned 11.7% since the start of 2020 to 31 July while the Australian Sustainability Leaders fund lost 5.2%
This compared to losses of 3.6% by the global sector and 9% by the Australian equity sector.
Other sustainable and responsible ETFs available included VanEck Vectors MSCI Australian Sustainable Equity, VanEck Vectors MSCI International Sustainable Equity, Russell Australian Responsible Investment ETF, UBS IQ MSCI Australia Ethical ETF, UBS IQ MSCI World ex Australia Ethical ETF.
The top inflows were seen in the BetaShares Australian High Interest Cash ETF which saw inflows of $166.3 million.
The largest outflows were seen in Australian and US equities as well as cash products with the biggest outflows coming from iShares Core S&P ASX 200 ETF and SPDR S&P ASX 200 ETF which lost $159 million and $131 million during the month.
Total market cap was $67.2 billion, an increase of $1.3 billion over the month.
AUTHOR
Laura Dew
Recommended for you
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
Fidelity International has worked in tandem with Australian wealth manager Emanuel Whybourne & Loehr to launch an actively managed global equities strategy aimed at financial advisers.
