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Investors were net purchasers of money market funds while being net redeemers of equity funds, tax-exempt fixed income funds, and taxable bond funds for the week. For the week, the average equity fund (including ETFs) witnessed market declines of 1.01%, while its taxable fixed income counterpart declined 0.23%.
FlexShares' top-performing ETFs last week largely have one commonality: they all integrate ESG criteria into their investment strategies. Surging commodity prices, exacerbated by Russia's invasion of Ukraine and the ensuing halt in Russian global imports, have emphasized the need for improving the scale of clean energy sources across the globe.
Momentum for the U.S. Responsible Investing industry picked up in January when President Joe Biden signed executive orders to re-enter into the Paris Climate Agreement. In 2021 through October month-end, there were 110 equity and fixed income funds that launched focused on Responsible Investing—71 RI-related ETFs and 39 RI-related mutual funds.
Given the magnitude of the changes we foresee, long-term investors may find opportunities in the technologies and innovations that create renewable energy sources or reduce the carbon intensity of energy production. Net zero is about reducing greenhouse gas emissions so that over time we can achieve an overall balance between emissions produced, and the emissions removed from the overall atmosphere.
Environmental, social, and governance (ESG) continues to shine, despite a minor setback in the second quarter, as sustainable fund assets hit record highs. “Global sustainable mutual fund assets hit a fresh record high in the second quarter, led by flows into equities, although the pace of net inflows slowed from the prior quarter, data from [.
Total AUM for ESG/SRI funds is roughly $537.1 billion - 75% represented by actively managed funds. Actively managed funds make up the majority of AUM for both the equity (68%) and fixed income (94%) universe.
Environmental, social, and governance (ESG) investing has been a worldwide phenomenon, a trend captured by the FlexShares STOXX Global ESG Impact Index Fund (ESGG). The fund literally puts the whole world in investors' hands when it comes to getting global ESG exposure.
Plus, some of the launches and other ETF actions that took place over the past two weeks.