According to Bloomberg Intelligence (BI), the decreased concentration of stocks associated with the clean energy theme within ETFs provides investors with broader and less volatile exposure. Still, warns BI, some companies like Sunworks still have close to 20% of their shares held by the ETFs so drastic price swings can still be expected.

Invesco has launched a new fixed income ETF on LSE providing socially responsible exposure to the US dollar high-yield corporate bond market.

DWS has launched a pair of ETFs on Xetra which provide investors with access to the rapidly growing market for green corporate bonds.

Legal & General Investment Management (LGIM) has launched a new ETF providing diversified exposure to the commodities futures market while using various smart rolling mechanisms to target the most effective contract maturity for each underlying commodity.

Bloomberg has broadened its equity indexing capabilities with the launch of its first emerging markets and thematic equity indices.

KraneShares has introduced a new China-focused fixed income ETF providing exposure to renminbi-denominated securities included in the Bloomberg Barclays Global Aggregate Index.

Vanguard has introduced its first ESG-considered fixed income ETF in Europe with the launch of the Vanguard ESG Global Corporate Bond UCITS ETF.

By Shaheen Contractor, ESG Analyst, Bloomberg Intelligence.

ESG ETF assets hit $218bn last year as the number of funds grew and asset managers launched new funds to capitalize on the growth in the market. However, even though ESG factors have become a major influence in the market, it is still difficult for investors to understand what exactly ESG ETFs offer.

Amundi has revealed plans to expand its environmental, social and governance (ESG) product suite with the transition of six regular fixed income ETFs into equivalent ESG exposures in the coming weeks.

By the ETF research team at State Street Global Advisors.

Investment-grade credit was the darling of investors in 2020. Dramatically wider spreads to government bonds, following the March sell-off, coupled with a central bank backstop made IG credit an easy investment choice.