The Covid-19 pandemic has brought unprecedented uncertainty to financial markets. Yet the demand for sustainable ETFs in Europe has been stronger than ever. In the period from 1 January 2020 to 31 May 2021, the inflows into Equity ESG ETFs reached +70bn USD (Figure 1). It means that the ESG segment achieved a 50% share of inflows into the entire equity ETF market (+140bn USD). Over the same period, core equity ETFs – those covering broad market cap benchmarks – have struggled to attract demand, finishing at +6bn USD of net new money.
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