The asset manager plans to double the number of ESG ETFs it offers over the next few years.
BlackRock has launched a suite of multi-asset ETFs.
Tom Bailey, ETFs specialist at interactive investor, says: “The decision by BlackRock to launch a range of multi-asset environmental, social and governance (ESG) ETFs is part of the company’s broader push into ESG and socially responsible investing. Larry Fink, the chief executive of BlackRock, has often spoken about his desire to increase ESG options for investors. As he wrote in his annual letter to clients in January 2020: ‘We believe that sustainability should be our new standard for investing.’ He also noted that the company plans to double the number of ESG ETFs it offers over the next few years.
“But alongside a no-doubt sincere belief in the inherent merits of ESG investing, there are two factors likely driving BlackRock’s ESG agenda.
“First, investors are now believed to be increasingly ESG-conscious. Second, BlackRock in my opinion, likely views offering ESG investing options as a vital way to distinguish itself from the other big index-fund providers.
“Big index-fund providers’ flagship funds charge less than 10 basis points. As a result, it is no longer just enough for the big index-fund providers to compete on the basis of fees – providing more niche and tailored products is now also vital. By offering this range of ESG multi-asset ETFs, BlackRock is trying to place itself as the leader among other big index-fund providers when it comes to ESG investing.”
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