Karim Chedid, CAIA 02/Nov/2021

Insights from iShares by BlackRock, the world’s leading Exchange Traded Fund (ETF) provider.* Why iShares? > Unless otherwise stated all data is sourced from BlackRock as at 02 November 2021. All amounts given in USD.

*World’s leading ETF provider: Based on over 900+ ETPs and more than USD $2 trillion in AUM globally, BlackRock Global Business Intelligence as at 30 June 2019. 

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Around the world in 80 seconds, 2 November 2021

This week, iShares Head of Investment Strategy, Karim Chedid, takes a look at recent rate volatility and is joined by BlackRock’s EMEA Head of Sustainable Indexing, Manuela Sperandeo, who explains how investors are increasingly putting sustainability at the core of their portfolios.

KARIM CHEDID: Hi. Welcome back to Around the World in 80 Seconds. This week, we focus on rate volatility and we deep dive on sustainable investing with our guest speaker, Head of Sustainable Indexing, Manuela Sperandeo.

In the past week, we had some outsized moves in rates, but ultimately, real rates remain firmly negative, which is supportive of our positive view on equities. Also, with the Q3 earnings season underway, this has been supportive of equities, with numbers still positive. In the coming week, all the focus is on the live meetings from the Fed [US Federal Reserve] and the Bank of England, and – last but not least – on climate and sustainability.

MANUELA SPERANDEO: Thank you, Karim, and hi everyone. 2021 has been a truly blockbuster year if we think about sustainable investing. Globally, we've seen more than US$100 billion flowing in sustainable ETFs. European investors are very much leading the charge. We've seen more than three-quarters of Europe-listed ETF flows into sustainable ETFs. Investors are recognising that climate risk is investment risk and are turning to these instruments to really take both defensive as well as cyclical market views.

We see this trend only getting stronger. The momentum behind sustainable investing is further evidenced by the number of companies which are pledging to net zero emissions. We, at BlackRock, have been working with investors to provide a comprehensive toolkit to really enable investors both playing into the divestment space all the way into favouring those companies which are already taking actions.

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