The UN Conference on Trade and Development (UNCTAD), the SDG Investors Partnership, TrackInsight, and Conser released a tool to help investors search for exchange traded funds (ETFs) that directly align with the SDGs. The tool aims to help investors identify and invest in environmental, social, and governance (ESG) ETFs that can support SDG achievement.
According to the tool’s webpage, ESG ETFs directly address 11 of the 17 SDGs. More than 200 ETFs, or nearly 41% of total ESG EST assets, directly align with an SDG.
The tool displays alignment with SDGs, illustrating coverage by Goal, the number of ETFs aligned with the Goal, and the total investment by Goal. Three SDGs represent the majority of asset alignment: SDG 5 (gender equality), SDG 7 (affordable and clean energy), and SDG 13 (climate action). For SDG 13, for instance, the tool identifies 155 ETFs, totaling USD 49.1 billion.
Some SDGs do not yet align with existing ETFs, including SDG 1 (no poverty), SDG 3 (good health and well-being), SDG 10 (reduced inequalities), SDG 15 (life on land), SDG 16 (peace, justice and strong institutions), and SDG 17 (partnerships for the Goals).
Three SDGs align with only one ETF: SDG 2 (zero hunger) aligns with an ETF totaling USD 18 million; SDG 4 (quality education) aligns with an ETF totaling USD 7 million; and SDG 14 (life below water) aligns with an ETF totaling USD 39.3 million.
Similarly, two SDGs align with only two ETFs: SDG 6 (clean water and sanitation) aligns with two ETFs, totaling USD 57.8 million; and SDG 12 (responsible consumption and production) aligns with two ETFs, totaling USD 125.7 million.
Users can also view ESG ETFs by regions. Europe, with 370, has the most ESG ETFs available. In comparison, there are 161 ESG ETFs in the Americas, and 21 ESG ETFs in APAC, which includes Australia, China, Hong Kong, Japan, the Republic of Korea, and Taiwan. By clicking on a region, users can view the list of ESG ETFs by country and provider.
The tool also offers insights on which ESG strategies work best, common strategies by region, top ESG ETF providers, and top ESG index providers. [TrackInsight Tool Landing Page]