Following massive growth in the assets held in ETFs that follow ESG investment criteria, leading ETF data provider TrackInsight has launched ESG Observatory, an online hub with tools, data and analysis for investors. It is designed to help investors who are looking for more sustainability in their ETF portfolios.
ESG Observatory launches to provide an additional layer of analysis
ESG Observatory has been formed of a unique triumvirate with unsurpassed knowledge of the ETF and sustainable investment industries; combining the ETF expertise of TrackInsight, the independent ESG consensus methodology of Conser and guidance on mapping ETFs against the Sustainable Development Goals provided by the SDG Investors Partnership of UNCTAD – the United Nations Conference on Trade and Development. ESG Observatory is supported and sponsored by Amundi Asset Management.
ESG Observatory provides transparency for users who seek to invest with purpose by helping them to monitor key ESG investment trends, compare the different ESG strategies offered by ETF issuers and measure which products are contributing most towards meeting the United Nations Sustainable Development Goals (SDGs).
“In view of the material risks posed by issues such as climate change and the global pandemic, investors are paying increasing attention to sustainability in their investment decisions,” explained James Zhan, Senior Director of Investment and Enterprise at UNCTAD. “By looking into the impact of ESG ETFs from the SDG angle, we believe TrackInsight’s ESG Observatory can help align financial products with sustainable outcomes, and ultimately contribute to channelling finance to key SDG sectors.”
Free data on thousands of ETFs listed around the world
TrackInsight already provides free data on thousands of ETFs for investors via its existing portal. The new ESG Observatory will complement the existing ESG ratings and provide detailed breakdowns. Investors can also access research and tools to help them to build further sustainability measures into their portfolios.
“The astonishing pace of adoption for ESG ETFs is being driven by demand from institutional and retail investors who realise that their investment decisions have consequences and who want to invest with purpose,” said Jean-Rene Giraud, Founding CEO of TrackInsight. “With the market for ESG ETFs exploding worldwide, ESG Observatory provides a valuable resource for those investors who want independent data and information on the market, knowledge of the investment choices they have and metrics to gauge which ETFs are contributing most to a sustainable future.”
It comes are no surprise that the launch follows a period of unprecedented growth for ESG ETFs. As previously noted on this site, ESG ETFs reached a tipping point in 2020, when they witnessed an incredible 223% growth over the year, achieving a new record of $189bn in assets under management. ESG ETFs captured an incredible $97bn in flows over the course of 2020 and nearly 200 ESG ETFs were brought to market. According to TrackInsight, ESG is set to become a key battleground for ETF issuers in 2021.
Among the top performing ETFs in in 2020 were the Invesco Solar ETF, which pulled in a net USD return of 221.20% in 2020. Just behind it was the Invesco WilderHill Clean Energy ETF, with 200% gain. First Trust NASDAQ Clean Edge Green Energy Index Fund made 178.43%.