By Maryia Semianchova, director, global manager research at RBC Wealth Management

Fund assets under management (AUM) and flow data suggest that active ESG funds have a significant lead over passive strategies in the European market currently.

However, this advantage appears to be eroding as inflows into passively managed ESG funds outpace those into their actively managed peers. 

According to Morningstar data, as of the end of 2020, the share of passive strategies in the European sustainable funds market has increased from 18 percent to 22.5 percent in the space of three years. We see several fac...