In 2020, the leaders among US stock funds for profitability were funds investing in companies that work in the sphere of net energy. Such investments meet the requirements of investors interested in companies with a good environmental, social and managerial reputation (ESG).
PAIs of two funds managed by INVESCO, increased in price more than three times due to a significant increase in the cost of shares of companies that develop solar energy. The growth, in particular, is due to a wave of inflow of funds into investment ESG strategies.
The Invesco Solar Exchange Fund with $ 3.7 billion assets went up to Christmas by 238%, taking first place in the ranking of American stock exchange and mutual funds investing in stocks, according to MorningStar. Among the main assets of INVESCO Solar are two manufacturers of solar energy for residential buildings: Enphase Energy, the capitalization of which increased by almost 600%, and SunRun, whose shares rose by 400%. The second profitability was also the exchange fund, INVESCO Wilderhill Clean Energy, which raised by 220%. One of its largest assets - FuelCell Energy shares, which designs and manufactures solar power plants. Its shares rose by almost 400% in 2020.
"The victory of Joe Bayden in combination with a rapid decline in renewable energy production contributed to the further growth of funds specializing in investments in the solar and clean energy," says Rene Reina, director of investment in thematic and specialized products INVESCO. After high results in 2020, it is worth expecting the correction, said Rhine, but adds: "The main fundamental indicators of the renewable energy sector confirm the view that we are at an early stage of long-term growth."
Assets in global ESG funds since the end of 2019 grew by more than 50%, exceeding $ 1.3 trillion, according to the Institute of International Finance (IIF). The inflow of funds intensified at the end of last year, since investors expect active support from the industry by the new administration of Byyden, IIF notes. An illustration of how successful was the year for this strategy, was the fact that the ESG Foundation took the fifth place in the influx of funds among all stock funds in the United States. According to MorningStar, the ISHARES ESG Aware Msci Usa is under the control of Blackrock net-influx by November 30, $ 9.3 billion was $ 9.3 billion, as a result, the cost of net assets reached $ 12.7 billion.
The IShares ESG Aware MSCI USA Foundation is generally focused on following the dynamics of the S & P 500 index, but eliminates stocks, such as tobacco companies and low-rating ESG. BlackRock presents this strategy to financial consultants and investors as an easy entry point in the ESG investment sector and believes that the inflow of funds in such funds creates an impetus that contributes to the growth of prices of popular shares of companies following the principles of environmental friendliness, social responsibility and high-quality corporate governance.
"In the aggregate of the share of companies with the highest ESG ratings, the market for growth rates" during the March collapse due to a pandemic and in the subsequent period, noted by the Bosher, Director of Global Investment in Fidelity International. "We believe that the increase in the popularity of ESG funds in 2021 will only be accelerated, especially due to the fact that climate change becomes an actual agenda in the United States," he adds.
The Index Fund of the FIRST TRUST management company, which in pure energy and has assets of $ 2 billion, is also among the five most profitable US stock funds in 2020, along with two ARK Investment Management Funds, which focus on technological trends, especially on innovation in Health and cloud computing. "These are niche areas related to innovations, which, in all signs, found the demand from investors in 2020, given everything that happened," says Tony Thomas, Deputy Director for Strategies in the MorningStar Fund Market. - The influx of funds in ESG funds is growing, and I do not see the reasons for its slowdown. "
Translated Victor Davydov