5 most popular ESG thematic equity ETFs so far in 2022

ETFs with a Thematic ESG approach focus on a specific ESG theme such as Clean Water or Gender Equality. They invest accordingly to any of the three pillars of ESG, or a combination of them, with the underlying idea of a common theme such as Renewable Energy.

The Thematic ESG strategy has seen tremendous growth over the past few years with a lot of new ETF launches. Many of those Thematic ESG ETFs can be linked to some extent to a specific Sustainable Development Goal, so investors that are looking to invest accordingly to the sustainability principles expressed by the United Nations can easily find the right match amongst ETFs using this ESG strategy.

Which Thematic ESG ETFs are trending?

This year, Equity ETFs that follow a thematic ESG strategy have received roughly $3.7 billion in net inflows, among growing interest in clean energy, uranium & nuclear, carbon credits, and climate benchmarks.

This could be explained by the long-term plan of governments and corporations to decarbonize economies and business activities. However, the most recent and direct catalyst for the growing interest in Alternative energy ETFs (mainly nuclear) is the Russia-Ukraine War. European nations depending on Russian oil & gas to power economies have seen their energy prices skyrocket and their economies on the brink of collapse. The crisis highlights the vulnerability of most European economies and their dangerous reliance on foreign energy resources. Investors are betting that policymakers will take action to deploy more investments into the clean energy space and become energy independent. Other investors are hoping to make a quick gain from the rising prices of key "green commodities", such as Uranium and Lithium.

5 most popular ESG Thematic Equities ETFs in America

America-domiciled ESG thematic equity ETFs drew $1.2 billion of net inflows from investors this year. ETFs which witnessed the highest inflows are:

1. iShares Paris-Aligned Climate MSCI USA ETF (PABU): $629 million
2. Global X Uranium ETF (URA): $437 million
3. Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF (EMCR): $301 million
4. North Shore Global Uranium Mining ETF (URNM): $212 million
5. Invesco Solar ETF (TAN): $111 million

Top 5 ESG Thematic Equities ETFs in Europe

Europe-domiciled ESG thematic equity ETFs drew $1.45 billion of net inflows from investors this year. ETFs which witnessed the highest inflows are:

1. iShares MSCI EMU Paris-Aligned Climate UCITS ETF (EMPA): $563 million
2. iShares Global Clean Energy UCITS ETF (INRG): $243 million
3. Lyxor Net Zero 2050 S&P Eurozone Climate PAB (ZPAB): $150 million
4. Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF (ZPA5): $124
5. WisdomTree Carbon (CARP): $97 million

Top 5 ESG Thematic Equities ETFs in Asia-Pacific

APAC-domiciled ESG thematic equity ETFs drew $1.04 billion of net inflows from investors this year. ETFs which witnessed the highest inflows are:

1. Cathay Global Autonomous and Electric Vehicles ETF (00893): $512 million
2. Mirae Asset TIGER China Electric Vehicle Solactive ETF (371460): $460 million
3. ETFS Battery Tech & Lithium ETF (ACDC): $27 million
4. Mirae Asset TIGER Synth-Global Lithium & Battery Tech Solactive ETF (394670): $19 million
5. Mirae Asset TIGER Global Autonomous & Electric Vehicles Solactive ETF (394660): $17 million

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