ESG Takes off in Asia
Exchange-traded funds focusing on environmental, social and governance themes have been one of the fastest-growing market segments in a couple of years, but so far have yet to reach the acceleration in Asia as they have in the U.S. and EU, until now.
The most recent data from the Asian Pacific has more than 1.5x as many funds starting in the first half of 2021 than all of 2020.
The asset flows are even more staggering. Inflows since in the first half of 2021 are 10x larger than all of 2016, and they have almost already reached 2020’s $2bn. The standout countries are Australie, China, and Taiwan which comprise over 85% of all the ESG ETF assets.
Moreover, these trends are expected to continue with more advantages on transparency and liquidity than other market segments.
FINSUM: These are astounding numbers for ESG growth, and faster-growing economies might not have the incoming restrictions to ESG the US could be facing.