ETFs Charted - Thematic and ESG...Where are We?

Thematic ETFs: From Boom to Bust?

Once the toast of the 2020/2021 investment boom, global thematic ETFs have seen their popularity wane. Despite a rising overall market, assets under management (AUM) have stagnated since late 2023 ($284 billion YTD vs $285 YE 2023). This signals a cooling of investor interest, with net outflows even expected in 2024 (-$7 billion YTD).

Note these figures exclude Crypto ETFs.

Thematic ETF Bright Spots: AI, Nuclear, Infrastructure

Despite a general lack of enthusiasm for thematic ETFs, some themes continue to generate excitement. Artificial intelligence (AI) is the hottest theme globally, attracting close to $3 billion in net inflows this year. Nuclear energy and global infrastructure are also showing strong interest. 

Politics vs. Profits: US Backlash Casts Doubt on ESG

Political winds over the past couple of years in the US have shifted, leading to a backlash against ESG investing. This has created uncertainty for investors, causing them to withdraw funds from ESG ETFs.

As the political landscape evolves, the question remains: will ESG remain a relevant consideration for investors in the world's largest ETF market?

Who Leads the ESG Charge in Americas?

Trackinsight reveals which asset managers are dominating the ESG ETF landscape across the globe. See who's leading the race in Assets Under Management (AUM) and net inflows in Americas.

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Europe's ESG Rush Cools Too!

ESG investing in Europe is facing a period of turbulence. Growing skepticism about the true impact of ESG practices and a rise in greenwashing by companies have shaken investor confidence. Regulatory hurdles, while aiming to prevent greenwashing, have also added complexity for some. 

As a result, the flow of money into ESG ETFs in Europe has declined.

All Eyes on Active ESG Investing in Europe 

Overall, European ESG ETF flows may be dipping, but active ESG options are popular and represent over a quarter of ESG flows in the region. J.P. Morgan, a leader in active management, holds the largest share of these assets in Europe, solidifying their dominance in the active ESG space in the continent.

Who Leads the ESG Charge in Europe?

Trackinsight reveals which asset managers are dominating the ESG ETF landscape across the globe. See who's leading the race in Assets Under Management (AUM) and net inflows in Europe.

Download our Global ETF Survey Report 2024