"We have a lot of evidence that this next generation that's going to take over the world does care," said Dave Nadig, chief investing officer and director of research at ETF Database. "They're asking harder questions. The question is, what is the right way for them to express those opinions?"
That's a high-stakes, nearly $21 bill question in fact — the amount of new money pulled into funds identified as "sustainable" in 2019. The figure, tracked by Morningstar, marked a nearly fourfold increase over the previous calendar-year record, set in 2018.
In early 2020, even as COVID-19 ravaged mainstream investments global demand for ESG proved resilient. In the first quarter of 2020, Morningstar found that the global sustainable-fund universe collected inflows of $45.6 billion, compared with outflows of $384.7 bill for the overall fund universe.
For many ESG investing advocates, the flow data is validation. Americans aren't just claiming to be interested in sustainable investing; they are putting their money where their mouth is. Forward-looking sentiment surveys are also encouraging for those who support this investing theme.
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