Demand Hot For iShares ESG Funds

September 13, 2019

The iShares ESG MSCI U.S.A. ETF (ESGU) just became the latest environmental, social and governance (ESG) ETF to break $1 billion in assets under management (AUM).

Month to date, ESGU has taken in $700 million, pushing the formerly average-sized fund from $296 million in AUM to $1.01 billion. On Sept. 10, the fund brought in $498 million alone, its largest one-day flow ever:

 

Source: ETF.com data. Data as of Sept. 12, 2019.

 

ESGU's inflows place it in a billion-dollar category that counts only four other socially responsible ETFs as members, including the $1.6 billion iShares ESG MSCI USA Leaders ETF (SUSL) and the $1.4 billion Xtrackers MSCI U.S.A. ESG Leaders Equity ETF (USSG).

Other top funds include the two oldest ESG ETFs, the $1.2 billion iShares MSCI USG ESG Select ETF (SUSA) and the $1.5 billion iShares MSCI KLD 400 Social ETF (DSI), which launched in 2005 and 2006, respectively.

iShares Takes Over ESG

Four of the top five largest ESG ETFs are now from BlackRock, which, over the course of 2019, has quietly accrued significant assets in that lineup.

Year to date, the 14 iShares ESG products have brought in $3.6 billion in new assets, more than any other issuer's lineup. Not even Vanguard comes close; its two ESG ETFs have brought in $808 million.

ESGU was the second-highest asset gainer year to date, after SUSL:

 

Assets Into iShares ESG ETFs, YTD
Ticker Fund YTD Inflows ($M)
SUSC iShares ESG USD Corporate Bond ETF 32
EAGG iShares ESG U.S. Aggregate Bond ETF 21
DSI iShares MSCI KLD 400 Social ETF 105
CRBN iShares MSCI ACWI Low Carbon Target ETF -70
ESGE iShares ESG MSCI EM ETF 248
SUSB iShares ESG 1-5 Year USD Corporate Bond ETF 69
ESML iShares ESG MSCI U.S.A. Small-Cap ETF 42
SUSA iShares MSCI USA ESG Select ETF 215
BGRN iShares Global Green Bond ETF 0
SDG iShares MSCI Global Impact ETF 14
SUSL iShares ESG MSCI USA Leaders ETF 1516
ESGD iShares ESG MSCI EAFE ETF 416
ESGU iShares ESG MSCI U.S.A. ETF 846
ICLN iShares Global Clean Energy ETF 127
     
  Total 3581

Source: ETF.com; data range from Jan. 1 to Sept. 12

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