Another reason could be that issuers like BlackRock are using their ESG ETFs in their model portfolios, suggesting that organic market demand might be less than it than appears, according to BI.
“The good news for ESG proponents is that BlackRock is the biggest money manager, and they have a lot of influence,” Balchunas said. “If they are putting their money where their mouth is, that can’t hurt.”
This article was provided by Bloomberg News.