Societe Generale subsidiary Lyxor ETF, Europe’s third largest ETF provider, announced today plans to double its ESG ETF assets to €10 billion by the end of 2021, and to become the leading provider for climate ETFs. The new goals were launched as part of the company’s announcement of plans to expand its range on the three key ETF product pillars of ESG and Climate, Thematics and Core.
According to Lyxor ETF, the company expects to expand its ESG offering by switching several of its existing ETFs to equivalent ESG indices, offering a simple alternative to traditional market capitalisations to meet its clients’ needs. Lyxor also continues to implement its programme of fund labelling and intends to obtain the “SRI Label” for its entire thirty-strong ESG ETF range by the end of the year.
Lyxor ETF also intends to bolster its range of climate ETFs by extending it to certain fixed income segments and expanding its range of Green Bond ETFs.
Flows into European ESG-themed ETFs have been particularly strong over the past several years. According to a recent Lyxor ETF report, inflows into European ESG ETFs more than doubled in 2020, reaching €45.5 billion, representing more than half of all inflows into all ETFs.
Arnaud Llinas, Head of Lyxor ETFs and Indexing at Lyxor Asset Management, said:
“Having started as tactical allocation building blocks for institutional investors, ETFs have since become long-term savings instruments for a much wider range of investors including in the wealth management segment. That is only going to accelerate. Our shift in focus aims at addressing investors’ long-term concerns – aiding the transition to a low-carbon economy, capturing new themes in a post-Covid world and ensuring maximum efficiency for their investments – and as such reflects the profound change in nature of the ETF market.”