The unstoppable rise of ESG ETFs has continued almost unabated in Europe despite a challenging 18 months for the market hit by several headwinds.
Flows have remained resilient – continuing to grow beyond their market share – while launches of ETFs labelled Article 8 and 9 under the Sustain-able Finance Disclosure Regulation (SFDR) have outpaced their ‘non-ESG’ Article 6 counterparts in the first nine months of the year.
Despite this, there are signs investors are growing weary of the ever-increasing product offering and complex reporting requirements that risk turning them off sustainable investment altogether.
James McManus, CIO of Nutmeg, said there is a risk to growing complexity, particularly for retail investors, with too much ESG product choicein the market. “The problem when you have multiple providers offering similar index products is they have all got completely…
