Alfandari Bertrand BNP Paribas Asset Management BNP Paribas AM

BNP Paribas AM : ESG ETFs account for one third of total net ETF inflows in Europe in 2022

jul 25, 2022

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BNP Paribas AM : One third of net inflows to ETFs in Europe so far in 2022 has been into ESG products

Bertrand Alfandari, Head of Development for ETFs & Index Funds at BNP Paribas Asset Management

ETFs (Exchange Traded Funds) are gaining ground. Used for a long time by institutional investors, these investment solutions are also becoming increasingly attractive to individuals.

ETFs in Europe account for assets under management of almost USD 1.4 trillion and inflows of more than USD 63 billion year-to-date[1].

Environmental, Social & Governance (‘ESG’) ETFs are still on the rise, generating one third of net inflows between January and May 2022[2].

ETFs incorporating ESG criteria currently represent 16% of all ETFs in Europe, and according to a recent pan-European survey by BNPP AM[3], 91% of participants expect this level to grow or remain stable over the next 12 months. Investors surveyed were increasingly interested in thematic ETFs, particularly in Switzerland (72%) and the UK (68%), with the circular economy (61%) proving to be the most popular theme.

Bertrand Alfandari, Head of Development for ETFs & Index Funds at BNP Paribas Asset Management

“ESG ETFs continue to grow, with Europe playing a leading role as it represents almost half of the products listed in the world, 60% of the assets and around two-thirds of the inflows[4]. The development of ESG offerings in the ETF market has been very rapid in Europe, with ESG ETF inflows more than doubling in 2021.”