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Sustainable strategies are set to flourish

Global ETF Survey 2020

Strong demand expected for ESG ETFs

The Global ETF Survey 2020 highlights growing demand for sustainable investment strategies, as professional investors increasingly look to incorporate the management of risks associated with environmental, social and governance (ESG) factors into their portfolios.

Demand for ESG ETFs is being further boosted by growing evidence that sustainable investment strategies can enhance long-term returns, while many regulators are also insisting that investors take ESG factors into account.

Europe leads the way

Outside of the US, most investors expect strong growth in demand for ETFs that take account of ESG factors.

European investors lead the way with the adoption of sustainable investment strategies and integration of ESG funds into portfolios. US investors are less enthusiastic, perhaps reflecting scepticism over sustainable investing and the impact on returns.

 


Percentage of respondents expecting strong growth

Sustainable strategies to drive ETF growth

Investors expect that the strong growth in demand for sustainable investing will be a key future growth driver for ETFs.

The rising demand for ESG strategies is most likely to be considered as very impactful by professional buyers in Europe. Sustainable investing is also expected to strongly impact ETF growth by just over half of non-users of ETFs.

Impact of rising demand for ESG strategies on the ETF market

 

ESG investing and active ETFs

Investors are increasingly using active ETFs because they can help investors with specific objectives. For instance, asked which strategies active ETFs are most suitable for, 58% of professional buyers cited gaining exposure to specific investment criteria, such as ESG factors, as one of the top three.


 

 

ESG ETFs point to a sustainable future

Investors are increasingly looking to ETF providers to offer ESG strategies, as factors such as climate change drive demand for more sustainable investments.

The Global ETF Survey 2020 provides insights into investor attitudes towards sustainable investing and the link to growth in active ETFs. The findings are analysed in detail by our research partner, Core Data Research.

Register to download the full report

How investors are using active ETFs

The Global ETF Study 2020 shows that active and smart beta ETFs are expected to grow faster than passive funds in the next two-to-three years.

Learn more about the results

ETF Capabilities

J.P Morgan Asset Management offers a range active, smart beta and passive ETFs designed to help investors build stronger portfolios.

Find out more about our ETFs

Global ETF Study 2020

The full findings from the study provide further valuable insights into how ETFs are being used now, and how they may be used in the future.

Explore the study findings

This is a marketing communication and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and investors may not get back the full amount invested. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy.
 

This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000.

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