Sustainable Funds Markets: A Comparison of Europe and the USA
DOI:
https://doi.org/10.18778/2082-4440.49.01Keywords:
sustainable investment trends, mutual funds, financial regulationsAbstract
In recent years, sustainable funds have emerged as one of the most dynamically expanding segments of the global fund market. This trend has been particularly pronounced in two most developed markets: the United States and Europe. However, the rate of expansion, together with its associated conditions, shows substantial differences between these two regions. This article compares the development of sustainable fund markets in the U.S. and Europe between 2020 and 2024 and identifies the key factors driving these trends. Europe significantly outpaced the U.S. in sustainable fund growth due to a more effective legal framework that includes ESG reporting standards and financial investment regulations. The European market has demonstrated stronger resilience to economic and geopolitical disturbances. Investor sentiment declined between 2022 and 2024, which resulted in decreased fund inflows, increased fund closures, mergers, and rebranding activities in both regions.
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