ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. Bringing ESGA to the ESG ETF Toolbox
Core Strategies Channel
Share

Bringing ESGA to the ESG ETF Toolbox

Ben HernandezMar 04, 2022
2022-03-04

With a flurry of environmental, social, and governance (ESG) exchange traded funds having come to market in recent years, it’s understandable that some fly under the radar.

That’s the case with the American Century Sustainable Equity ETF (ESGA C+), which turns two years old in July. To its credit, while ESGA isn’t old and it doesn’t grab a lot of headlines, it’s not small. The fund has nearly $130 million in assets under management.

That’s a sign that the actively managed American Century ETF is capitalizing on advisors’ and investors’ budding enthusiasm for ESG strategies, and that momentum continues building.

“Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of US$9.81 billion during January said ETFGI, a London-based ETF research firm, in a note out Monday.

ESGA could eventually grow into an investor favorite in the ESG ETF space because it’s actively managed. That management style could be a benefit to investors as issues such as greenwashing and ESG scoring remain prominent in this part of the fund landscape. As an active fund, ESGA can focus on legitimate ESG opportunities while avoiding companies with flimsy ESG credentials.

On that note, ESGA confirms that not all ESG ETFs are cut of the same cloth, though there are some similarities across the space.

“Many critical articles and studies incorrectly assume that all ESG funds have the same objectives and follow similar processes. In reality, there’s a broad spectrum of approaches, from passive to active, and from diversified to single theme strategies. Some seek to only own “good actors” with positive social impact while others target “bad actors” to encourage positive change through active engagement,” notes AllianceBernstein.

Another point in favor of ESGA today is that while the fund is heavy on quality mega-cap growth stocks, a sluggish start to 2022 for many of those names has valuations more attractive in that group than they’ve been in some time. That’s an indication that investors don’t have to pay up for the privilege of allocating to ESG strategies.

“Within our global investment universe of more than 2,000 stocks aligned with the United Nations Sustainable Development Goals, only 7% currently trade at price to forward earnings ratios (for the next fiscal year) in excess of 50x, while 22% have single-digit P/Es. Regardless of how one defines bubble valuations, describing ESG investing broadly as a bubble is an overstatement, in our view,” adds AllianceBernstein.

For more news, information, and strategy, visit the Core Strategies Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X