'SUSTAINABLE' RESILIENCE AMID MARKET VOLATILITY

‘SUSTAINABLE’ RESILIENCE AMID MARKET VOLATILITY

Despite the market drawdown, investors remain committed to sustainable ETFs.

Capital at risk. This information should not be relied upon as investment advice, or a recommendation regarding any products, strategies. The environmental, social and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.

Summary

  • The recent market selloff shed an interesting light on sustainable ETFs, which have exhibited resilience relative to broad market benchmarks and sustained flows throughout the volatility.
  • Structural underweights to the energy and utilities sectors, low market beta, and exposure to the momentum factor have favoured best-in-class sustainable indices, such as the MSCI SRI Reduced Fossil Fuel range.
  • Investors looking to re-enter the market could consider doing so sustainably, by gradually rebuilding strategic equity and fixed income exposures using a broad range of sustainable indices.
Download: ‘Sustainable’ resilience amid market volatility
Despite the recent market drawdown, European-listed ESG ETFs gained $2bn from mid-February through to the end of March.1
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Download: ‘Sustainable’ resilience amid market volatility