Top ESG ETFs in the first quarter of 2022

The market's first chapter in 2022 was eventful and doozy with a near WWIII kickstarter in Ukraine after Russia invaded the ex-USSR nation and drastic changes in macroeconomic policies to cool off inflation. However, this did not fade the appetite of ESG ETFs investors who added roughly $23 billion into ESG ETFs in the first quarter of 2022 – out of which $6 billion went into America-domiciled ESG ETFs, $15.8 billion into Europe-domiciled ESG ETFs, and $1.25 billion into APAC-domiciled ESG ETFs.

ESG ETFs flow breakdown in Q1 2022

Among the most popular strategy globally was general integration drawing more than half of total net inflows. ESG thematic came in second with 27%, Best-in-Class third with 16% and Exclusion screening last with 6%. Learn more about the different ESG strategies.

In terms of flows distribution by asset class, Equity ESG ETFs had the lion's share – drawing more than 73% of the total net flows. Fixed Income ESG ETFs came in second with 25%, while the rest went to commodity or alternative assets.

The top 10 most popular ESG ETFs in America in Q1 2022

Here are the top 10 most popular ESG ETFs in the first quarter of 2022 based on total net inflows:

Brazilian and Uranium ETFs highlight best performing ESG ETFs in America

Here are the top 10 best performing ESG ETFs in America in the first quarter of 2022 based on cumulative USD returns:

Brazilian stocks and other LATAM stocks have beeped on investors' radar amid growing risk in the east with Russia becoming uninvestable and concerns about the rising tension between China and the United States. Brazil, an agricultural commodity powerhouse has benefited from the surge in prices as Russia and Ukraine – two other commodities – have been at war since February 24th, disrupting supplies of key commodities such as wheat and corn. 

Meanwhile surging energy commodity prices due to the sanctions on Russia have highlighted the need to diversify energy sources and end heavy reliance on other nations' resources. Nuclear has been the talk of the town due to its green characteristics and investors have been bullish on this alternative energy source despite the controversy around its safety.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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