Excerpt from Yahoo Finance, May 8, 2020
also, in ETF.com, finance.yahoo.com
It’s been a busy few weeks in ETF Land. But with all the focus on leveraged ETF closures, oil ETF shake-ups and the Fed’s purchases of bond ETFs, there hasn’t been much ink left on the page for coverage of less dramatic—though no less significant—ETF stories.
Below we take a look at a few of the developing, yet overlooked, ETF stories on our radar.
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One ESG ETF To Rule Them All?
Cratering oil prices were the signal many investors were waiting for to make the switch to ESG ETFs. Several ESG ETFs, particularly iShares funds, have seen strong inflows year to date, continuing a trend we first spotted last year.
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Investors aren’t performance-chasing here, given that ESGU’s returns are average among ESG ETFs. In the short term, ESGU’s 16% rise over the past month has been far outstripped by those of renewable energy ETFs, like the … or the Invesco WilderHill Clean Energy ETF (PBW), which have risen … and 24%, respectively. But the point of ESGU isn’t to outperform. It’s to provide marketlike exposure without the stocks that ESG investors find objectionable, like tobacco sales or landmine production. It also minimizes—but does not eliminate entirely—exposure to oil stocks, like Exxon Mobil Corp (XOM) or Chevron Corp (CVX).
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