ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • 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 of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. The Responsible Investing Channel
  2. Sustainable ETFs Find Footing, Receptive Audience
The Responsible Investing Channel
Share

Sustainable ETFs Find Footing, Receptive Audience

Tom LydonJul 28, 2023
2023-07-28

Environmental, social, and governance and sustainable investing have taken their lumps. These styles are under attack by some politicians and regulators, and the 2022 slump incurred by growth stocks didn’t help matters.

While policy issues linger, growth equities are rebounding, and end users remain enthusiastic about embracing sustainable investing strategies. That could pave the way for broader adoption of exchange traded funds such as the Calvert US Select Equity ETF (CVSE ).

One of the newer entrants to the field of sustainable/ESG ETFs following its January debut, CVSE is relevant at a time when more retail investors are looking to express their values through investment products and as sustainability becomes a focal point in many corporations’ C-suites.

“Sustainability is key to society and to the investment industry. Retail investors are asking for it more and more and are actively seeking ways to give sustainability a prominent role in their investment portfolios. Morningstar’s fund flow data underline the ongoing growth of the green segment in the fund market,” according to Funds Europe.

Improved Regulatory Framework Could Lift Sustainable ETFs

One of the issues that has long vexed advisors and investors seeking access to ESG or sustainable funds is lack of uniformity from regulators and fund issuers in terms of defining “ESG” and “sustainable.” Fluidity on those fronts has undoubtedly been a barrier to adoption.

For its part, CVSE addresses some of those concerns as an actively managed fund. Active managers can take some liberties in terms of specific holdings and how those stocks fit into the fund’s portfolio. They can also potentially do a better job of ensuring a fund lives up to its sustainable billing than many index-based strategies.

On that note, more robust regulatory framework pertaining to sustainable investing could spur adoption of this style and sustainable ETFs such as CVSE. Fortunately, it appears that such a framework is emerging in some parts of the world, and that could provide a template for broader global usage.

“The Sustainable Finance Disclosures Regulation (SFDR) regulations package brought a lot of work to the industry’s plate; it is meant to outline what sustainability is, how it is incorporated into investment products, what their objectives are and – most important – how fund companies, asset managers and distributors should communicate with their end investors about it,” added Funds Europe.

For more news, information, and analysis, visit the Responsible Investing Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

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