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Sustainability Matters

ESG Funds Setting a Record Pace for Launches in 2020

Here's a look at some intriguing new sustainable funds so far this year.

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A lot has been happening in the sustainable funds universe this year. Sustainable funds have performed well relative to conventional funds amid the global pandemic. They have also received record levels of flows. The pandemic and the movement for racial justice in the United States have likely increased investor interest and will prompt even more people to follow through on that interest with actual investments.

Against that backdrop, the sustainable funds universe continued to grow in the first half of 2020 with 23 new funds launched and three Xtrackers exchange-traded funds repurposed into environmental, social, and governance-focused strategies. With more than 20 new funds currently in registration at the SEC, we will likely see a record number of new sustainable fund launches in the U.S. this year. It would mark the sixth year in a row with more than 20 new launches.

Jon Hale does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.