ESG ETF Investment Flows Could Double This Year After Record Q1 - But Surge In Clean Energy ETF flows could increase ESG Investing Volatility, Bloomberg Intelligence Says Date 29/04/2021 ESG ETF inflows in the first quarter hit a record $54 billion equivalent to 60% of total flows last year putting the sector on course to double this year, a new report published by Bloomberg Intelligence (BI) says.
The adoption of the EU’s new taxonomy rules on green investments provides an opportunity for managers to develop climate products with new launches already from UBS, BlackRock and Amundi, the report notes. However, the surge of funds into clean energy could increase the overall volatility of ESG investing as clean energy ETFs are more cyclical and experienced big declines in 2020 during the downturn