Momentum is building in the Xtrackers MSCI USA ESG Leaders Equity ETF (NYSE Arca: USSG) after it broke through the $3 billion in assets under management level last month.
The increasing popularity of the product reflects growing investor interest in environmental, social, and governance (ESG) ETFs. The ETF tracks large- and mid-cap U.S. stocks, with similar risk and return characteristics to the MSCI USA Index, but with a weighting towards companies with the strongest ESG characteristics relative to sector peers. It has a net and gross expense ratio of 0.10%.
Amanda Rebello, DWS Head of Passive Sales and U.S. onshore, commented: “The Xtrackers MSCI USA ESG Leaders Equity ETF continues to attract significant investor interest as ESG moves into the mainstream. We expect to see inflows come in at a strong pace this year.”
According to independent analysts ETFGI, assets invested in ESG ETFs and exchange-traded products (ETPs) globally reached a new high of $187 billion at the end of 2020, representing a yearly increase of 206%. Net inflows for ESG ETFs and ETPs globally in 2020 were $88.95 billion, up significantly from the $27.79 billion gathered in 2019, according to ETFGI.
USSG ranks fifth in the U.S. in terms of ESG ETF assets under management and, with $296 million positive flows in January, placed fourth in its category for inflows for the first month of 2021. The Xtrackers ESG range was awarded ‘ETF Suite of the Year’ at Fund Intelligence’s Mutual Fund Industry and ETF Virtual Awards 2020.
These industry awards are meant to recognize people and organizations whose excellence, achievements, and contributions to the mutual fund industry have stood out. In addition, Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) won the ‘Newcomer ESG/Impact ETF of the Year’ accolade.
For more information on USSG, visit www.Xtrackers.com.
For more market trends, visit ETF Trends.