From Yahoo Finance: 2025-05-01 18:45:00

The Trump administration’s first 100 days were tough on equity ETFs, particularly ESG funds. Investors have withdrawn $623.9 billion from the top 10 ESG funds since January 20. The largest fund, iShares ESG Aware MSCI USA ETF, lost $420.1 million and is down 8.7% in three months, slightly underperforming the S&P 500.

President Trump’s cuts to programs promoting ESG causes and support for fossil fuels have led investors to flee ESG funds. These funds, once popular for supporting social and environmental well-being, have faced backlash from conservative politicians since 2022. States like Texas and Florida have even banned government pension money from investing in ESG funds.

The majority of top ESG funds are from BlackRock, whose CEO has downplayed the role of ESG amidst criticism. Despite small inflows post-Trump, the $9.5 billion Vanguard ESG U.S. Stock ETF gained $64.6 million. However, these gains were offset by outflows from other funds like iShares MSCI USA ESG Select ETF and iShares MSCI KLD 400 Social ETF.



Read more at Yahoo Finance: ESG ETFs Take Big Hits During Trump’s First 100 Days