Wealth Adviser Newsletter 18.02.22

Will SFDR encourage ETF use?

Philippa Aylmer examined the relatively slow pick up of ETF usage in the UK this week, positing that SFDR and its requirements for advisers to provide an ESG option might drive ETF use higher.
The fact that many sustainable investment products are only available as ETFs means that "whether they like it or not advisers are going to have to look at ETFs when considering a passive sustainable option," says Matt Brennan, Head of Investment at AJ Bell. "If you don’t embrace ETFs, you are closing yourself off to new ways of investing whether that is by theme or sector."
Asset management industry giant BlackRock clearly thinks that ESG offerings are the way to go, with their launch this week of a range of UK-domiciled sustainable iShares index mutual funds, targeted at what it calls a gap in the UK wealth market for strategies that help clients make a sustainable transition with indexing.
If you would like to see more about ETFs, do take a visit to Wealth Adviser’s sister title, ETF Express.
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Beverly Chandler, managing editor

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