##  [# Thematic ETFs Could Satisfy Thirst for ESG ](/sections/features/thematic-etfs-could-satisfy-thirst-esg) 

 

# Thematic ETFs Could Satisfy Thirst for ESG 

 

 

Savvy financial advisors can sidestep the political quagmire of ESG investing by using thematic ETFs.



 

 

 

 

 [![Jeff_Benjamin](/sites/default/files/styles/author_image_icon/public/2023-08/Jeff_Benjamin_author.png?itok=-fUp7EJP "Jeff_Benjamin")](/authors/jeff-benjamin) 

[By Jeff Benjamin](/authors/jeff-benjamin)

 Aug 24, 2023

 Edited by: Ron Day

 

 

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It’s no secret ESG investing has morphed into a deeply polarizing political football linked to heated debates over climate change and woke corporate policies.

The topic was front and center Thursday during the Republican presidential debate when candidate [Vivek Ramaswamy, co-founder of Strive Asset Management](https://twitter.com/CollinRugg/status/1694698698566168916), referenced the “climate change agenda hoax” and added, “the anti-carbon agenda is the wet blanket on our economy.”

You know it’s bad when even BlackRock’s CEO Larry Fink—one of the most vocal proponents of getting the wealth management industry on board the ESG train—is suddenly avoiding any references to those three letters representing environmental, social and governance investing. That doesn’t mean he’s dialed down his focus on ESG causes, just that he’s reading the room and responding accordingly.

Much is being made about the future of ESG investing and how it might continue to evolve and navigate the current public relations obstacles. But in the meantime, there is a universe of financial advisors and investors still thirsting for ways to align their investments with their beliefs around certain ESG causes.

## **ESG-Conscious Investors**

That is where the growing universe of [thematic ETFs](https://www.etf.com/sections/features/thematic-etfs-struggle-capture-financial-advisors-attention) could realize a unique opportunity to give ESG-conscious investors what they want—without being dragged into the morass of dogmatic bickering.

Consider, for example, the [**iShares Global Clean Energy ETF (ICLN)**,](/ICLN) which is a $3.5 billion fund offering concentrated exposure to clean energy businesses.

Nowhere in the name does it suggest an ESG agenda, but this is a thematic strategy that might fit the bill for investors looking to support clean energy businesses.

Another example of a thematic strategy that could serve ESG investors is the $1.6 billion [**Invesco Solar ETF (TAN),**](/TAN) which invests in an index of solar energy companies.

According to the [etf.com database](https://www.etf.com/topics/theme-investing), there are more than 300 ETFs targeting a specific theme, with combined assets of around $125 billion.

“I think there’s a place for thematics in ESG investing,” said Komson Silapachai, partner at Sage Advisory.

He pointed out that with thematic ETFs, financial advisors can target exposure and bypass the ambiguity and potential greenwashing that can sometimes accompany ESG strategies.

Eric Balchunas, ETF analyst at Bloomberg Intelligence, said thematic ETFs offer “a way to do ESG investing while keeping the cheap beta core in the portfolio.”

*Contact Jeff Benjamin at* [*jeffrey.benjamin@etf.com* ](mailto:jeffrey.benjamin@etf.com)



 
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 [ Jeff Benjamin Wealth Management Editor ](/authors/jeff-benjamin) 

 

 

  Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing,…   [View Bio](/authors/jeff-benjamin)

 



 

 


 Related Topics  [ESG](http://www.etf.com/topics/esg) 

 [Thematics](http://www.etf.com/topics/thematic-etfs) 

 [Socially Responsible](http://www.etf.com/topics/socially-responsible) 

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