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ESG ETFs launched this year may not move the needle enough, CEO warns


Van Eck Associates’ CEO stated that even though there is a growing amount of eco-, social, and governance-related funds, it won’t suffice to address broad problems such as climate change.

Jan Van Eck stated that ESG is a consistent investment strategy on a fund by fund basis. However, this does not change the final result. “ETF Edge”This week.

ESG funds have contributed to a record number ETF launch this year. Several top issuers also launched theme-based versions their most popular ETFs:

However, breakthrough technologies such as the Internet are key to achieving significant changes. drought-resistant farmingVan Eck stated this in the interview on Monday.

“It’s technology companies and technology investments, private or public, who are going to bend the curve.”

MOTE may have a stronger flavor than the non-ESG MOTE counterparts, according to its CEO. Alphabet Microsoft ServiceNow Applied Materials Salesforce.comThese are the top ETF holdings.

Although there might seem to be an oversupply of ESG offerings, investors should get more interested, Todd Rosenbluth, CFRA’s senior director for mutual fund research and ETF research, said the same interview.

He stated that while there is more demand than supply, the future for ESG-related products looks bright. We believe we will see more of these products.”

ESG Version of Invesco’s QQQ TrustRosenbluth stated that (QQQQ) might launch before the end of this year.

But investors already have a range of options in all corners of the ESG space, he added — clean energy funds such as the iShares Global Clean Energy ETF(ICLN), Issue-Based Funds such as The Simplify Health Care ETF(PINK) is a nonprofit that donates a minimum $100,000 per annum in net profits to Susan G. Komen. It also plays on breast cancer. corporate governanceThese include Engine No. 1’s Transform 500 ETF(VOTE).