Český finanční a účetní časopis 2026(3):4-25

Determinants of ESG Investment Positioning: Cross-Sectional Evidence from Global ETF Markets

Sandra Matušovičová, Peter Moravec

ESG investing has gradually moved from a niche concept to a relevant driver of financial markets, raising important questions about what truly determines whether an investment product is perceived as ESG-oriented. In such context, this paper examines the determinants of ESG investment positioning in global ETF markets, with a particular focus on ETFs as composite products, where ESG classification extends beyond the traditional environmental, social, and governance pillars. Specifically, we analyze the relationship between the ESG scores of the largest exchange-traded funds, selected by assets under management (AUM), and a set of market and behaviorally-interpreted factors. Using cross-sectional data on major globally traded ETFs, the analysis employs correlation techniques and logistic regression modelling to identify factors associated with higher ESG positioning. The results indicate that several key factors contribute to increasing the odds of ESG positioning, most notably assets under management (67,5 %), fund inception period (55 %), and technology sector exposure (38,7 %), all statistically significant at conventional levels (p < 0,1 and better), as derived from the logit model. These findings suggest that ESG positioning in ETF markets is not driven solely by underlying sustainability attributes, but also by product-specific characteristics and market perceptions. This contributes to a better understanding of ESG investment dynamics and provides useful insights for portfolio management and the design of sustainable investment strategies.

Keywords: Sustainability, green finance, ESG investing, ESG positioning, ETF markets

JEL classification: G11, G12, Q56

Published: October 28, 2026  Show citation