ESG ETFs will take 'a larger share of inflows' from European investors in 2022

Tabula Investment Management research

European investors intend to significantly grow their allocations to ESG exchange-traded funds (ETFs) in 2022, as the EU’s Sustainable Financial Disclosure Regulation (SFDR) is increasingly used to inform investment decisions, new research found.

A survey by Tabula Investment Management, conducted among professional investors who collectively manage $145bn, revealed a 42% year-on-year increase in those who expect to "significantly allocate" new investments - defined as by 30% or more - into ESG-focused ETFs. The survey findings revealed that 57% of investors expect to allocate between 30% and 50% of new investment in ETFs into ESG-focused vehicles, up from 33% actually allocated in 2021. Meanwhile, 14% signalled they intend to allocate more than 50% into ESG ETFs this year, down from 17% last year. HM Treasury launches UK T...