Industry Updates

Equity ETFs benchmarked to MSCI indices smash through $1trn assets

$71bn assets in MSCI ESG ETFs

George Geddes

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Assets in global ETFs tracking MSCI equity indices have surpassed the $1trn milestone.

The landmark figure was reached following significant investor demand for transparent products in tandem with equity growth.

MSCI credited the growth to ESG and climate ETFs that have captured $71bn assets. Seven of the ten largest equity ESG ETFs in the US are benchmarked to MSCI indices.

There are over 1,500 equity and fixed income ESG indices that utilise MSCI ESG Research ratings and data.

In addition to ESG, MSCI believes thematics and fixed income investments will be the key areas of growth for the global ETF market.

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Henry Fernandez, chairman and CEO of MSCI, commented: “The investment industry continues a tremendous transformation towards new opportunities including new geographies, new asset classes, new styles and strategies, and more sustainable investing.

“MSCI is positioned to be the change agent that helps investors stay at the forefront of that transformation and on the efficient frontier of risk and return, as well as the partner of choice for investors around the world who are seeking exposure to the world’s capital markets and need to understand the opportunity set.”

Baer Pettit, president and COO of MSCI, added: “Over the past 50 years, MSCI has been a leader in providing indexes and other research-driven, technology-enabled tools and solutions for global investors, initially with market-cap indexes across geographies and industries.

“By focusing on establishing an innovation mindset, we have empowered our teams to explore creative, robust and holistic tools and solutions to help our clients make better informed investment decisions.”

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