North American Investors Pulled Money Out of ESG ETFs in 2023

What we’re showing

Net flows into ESG-themed ETFs over the past five years. This data comes from Trackinsight’s 2024 Global ETF Survey.

ESG is a framework for evaluating companies based on environmental, social, and governance factors (AKA non-financial factors). The intended goal is to guide investors towards sustainable and responsible businesses.

Global decline

The amount of investor capital flowing into ESG ETFs has diminished globally since 2021. In the North America, investors actually withdrew more than they allocated.

What’s going on in the States?

ESG has become increasingly politicized in the US. Some politicians argue that pension funds should not be allowed to potentially compromise returns by screening out companies according to an ESG criteria.