Demand Hot For iShares ESG Funds

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:

 

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

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