Much of the vitriol aimed at environmental, social and governance (ESG) investing appears to have died down — a positive for multiple reasons, not the least of which is that the party in power in Washington, DC was the one that led the anti-ESG crusade in recent years.
That could signal removal of an overhang for adoption of ETFs such as the Invesco ESG Nasdaq 100 ETF (QQMG ) and the Invesco ESG Nasdaq Next Gen 100 ETF (QQJG ). Arguably equally as or more important than a more sanguine political climate for ESG investing is the point that high-level professional market participants remained committed to sustainable investing principles.
That commitment doesn’t necessarily mean those investors are allocating directly to ESG ETFs like QQMG and QQJG, but their devotion to sustainable investing implies there’s a runway for long-term adoption of this investing style and the related ETFs.
The Survey Says…
BNP Paribas’ 2025 ESG Survey highlights institutional investors’ ongoing commitment to sustainable investing.
“The vast majority of respondents (87%) say their ESG and sustainability objectives remain unchanged, while 84% believe the pace of progress of sustainability is either going to continue or accelerate between now and 2030,” according to the study.
Perhaps boding well for adoption of ESG ETFs such as QQMG and QQJG, even against the backdrop of less discussion about ESG and sustainability, is the fact that 85% of the institutional investors polled by BNP Paribas acknowledged they’re implementing sustainability-related criteria in their investment decision-making process. There are other indications the long-term case for ESG remains intact.
“Most private capital managers believe ESG investing can add value, improve alignment with asset owners, satisfy their stakeholders and enable them to benefit from investment themes around decarbonisation and the shift to a low-carbon economy,” notes BNP Paribas.
The bank’s ESG study highlighted other issues on the radars of professional investors. Fifty-eight percent said there are lingering challenges pertaining to ESG/sustainability data and research, while 54% expressed concerns about greenwashing. Another 56% said there remains a give-and-take between short-term performance and long-term sustainability goals.
QQMG and QQJG address those concerns. From a performance perspective, the ETFs’ showings since inception have largely been comparable to those of the parent indexes. Additionally, the indexes followed by the two Invesco ETFs have transparent methodologies that mitigate greenwashing risks, meaning end users get clean, credible approaches to ESG investing.
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