Has the ESG ETF bubble burst?

Has the ESG ETF bubble burst?

At the time of writing the Nasdaq is down 28% on the year to date and the S&P 500 is down 19%. There is a significant correction going on equity markets - especially in the tech sector (where a lot of ESG ETFs are invested).

There has been a great deal of coverage in the financial media of bubbles bursting in tech and so forth but there has been almost nothing at all on what this stock market correction means for ESG ETFs.

As equity markets boomed over the last few years so did ESG ETFs. Over $120 billion poured into ETFs last year alone that were marketed as following companies with ESG track records. Bloomberg forecast late last year that ESG ETFs would likely reach $1 trillion in assets by 2025.

To read more on this story, see the May issue of The NED.

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