BNP Paribas Asset Management (BNPPAM) has announced plans to shut down two of its ESG-screened factor ETFs due to persistently low investor demand.
The BNP Paribas Easy ESG Low Vol US UCITS ETF (EVOU) and the BNP Paribas Easy ESG Momentum Europe UCITS ETF (EMOM) will be officially liquidated on 14 May 2025, according to a shareholder notice issued by the French asset manager.
“Taking into consideration that the assets of the sub-funds have reached a level that no longer permits efficient management and on the grounds of your interest, the board of directors decides… to liquidate these sub-funds,” the notice stated.
EVOU, launched in 2016, tracks the BNP Paribas Low Vol US ESG (USD) Net Return Index, providing exposure to US stocks selected for low volatility and adherence to ESG criteria. EMOM, on the other hand, follows the BNP Paribas Momentum Europe ESG (NTR) Index, targeting European firms demonstrating strong price momentum alongside ESG considerations such as carbon footprint, human capital, and corporate governance.
The closures come amid a broader retreat from ESG-labelled products, driven by regulatory uncertainty, heightened scrutiny around greenwashing, and a perceived lack of innovation in the space.
Adding to this trend, the European Securities and Markets Authority (ESMA) is expected to introduce new guidelines on fund naming conventions, prompting several issuers to drop ‘ESG’ from fund titles entirely.
Franklin Templeton recently joined the list of asset managers scaling back ESG offerings, announcing the closure of its socially responsible investing (SRI) global equity ETF, citing economic non-viability.
