• Of the $328 billion in ESG mutual funds and ETFs at the end of April 2022, 68% of the assets (or $222 billion) were managed by the 10 biggest players in the space. That represents even more concentration among the top 10 than at the end of 2018.
• The biggest recipients of net new ESG flows over the past 12 months have been iShares, Vanguard, and Calvert, reflecting demand for both active and passive products.
• The industry faces heightened scrutiny of which funds can carry the “ESG” label, which could shake up the market by directing flows toward asset managers with more rigorous definitions of ESG, which could affect market concentration. 
• Given that ESG is a significant part of many asset managers’ product development plans over the next few years, even small changes in market share could be significant.

ESG Assets and Top 10 Market Share, 2018 – April 2022

 Source: FUSE, Morningstar