Do-Good Funds Are Booming as ETF Launches Double From Last Year

  • ESG fund debuts total about 20 versus 9 by this time last year
  • Socially-responsible ETFs punch above their weight in flows

Photovoltaic panels at a solar farm in Calipatria, California.

Photographer: Bing Guan/Bloomberg
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Wall Street fund managers are cranking up the production line for sustainability-linked ETFs as investor demand defies this year’s rates and Russia-driven market turmoil.

At least 20 ESG-focused exchange-traded funds have launched in the U.S. this year through Wednesday, according to data compiled by Bloomberg. While comparisons are difficult to make because of evolving classifications, that’s roughly double a tally of nine from the same period in 2021, and compares with two in 2020 and just one in 2019.