ESG ETFs continue gains, with more focus on climate risk

As investors marched into exchange-traded funds focused on ESG factors last year, their path was well-worn. Like prior surges into equity and bond index products, assets flowed to the cheapest, broadest offerings for core exposures.

But while money continued to roll in this year, investors have been taking a harder look at ETFs focusing more on best-in-class companies and those placing specific emphasis on climate risk and solutions.