Despite this, only 14 percent have actual investments in SRI/ESG incorporated into their portfolios. Another 17 percent of the study have in-depth knowledge of SRI/ESG investing, but no tangible investments in the area.
One way to steer more investors to ESG products is through education.
“Data-driven educational material and more hands-on training will ultimately be what’s required,” said Brendan Powers, senior analyst at research and analytics firm Cerulli. “This effort will necessitate cooperation from asset managers supplying the product and their distribution partners (e.g., broker/dealer home offices, registered investment advisor custodians) that have built out the platforms for advisors to access the strategies.”
ESGV seeks to track the performance of the FTSE US All Cap Choice Index, which is market-capitalization weighted, and is composed of large-, mid-, and small-cap stocks of companies located in the United States. The companies are screened for certain ESG criteria by the index sponsor, which is independent of Vanguard.
With rate hikes taking a toll on emerging markets ETFs, a more dovish Federal Reserve could help the EM space shake out of their 2018 doldrums. After hiking rates for a fourth time in 2018 last week, Fed Chair Jerome Powell said that 2019 could see less rate hikes–a welcome sign for emerging markets that have been hit by rising rates stoking the fire for a stronger dollar.
The U.S. stock market has been the default play for investors during the historic, decade-long bull run, but the latest volatility may have steered them off course and opportunities abroad could be an alternative. Despite the deep declines in emerging markets this year, with respect to value compared to price, many of these ETFs from abroad present a profitable opportunity that can be realized, especially if China and the U.S. ameliorate their trade differences.
ETF investors can look to funds like IEMG, which seeks to track the investment results of the MSCI Emerging Markets Investable Market Index. The index is designed to measure large-, mid- and small-cap equity market performance in global emerging markets.
From an investment perspective, the case for emerging markets ETFs like IEMG lies in the prospect for a dead cat bounce.