This Chart Suggests the ESG Hype Train Could Be Over

What we’re showing

This chart shows cumulative investment flows into the 5 largest US-listed ESG ETFs, by AUM. (Tickers: ESGU, ESGD, ESGV, ESGE, and SUSA)

Key takeaway

Throughout 2023, the largest ESG ETFs in the U.S. have seen significant outflows. 

Context

ESG is increasingly becoming a topic of political debate in the U.S. In early 2023, the House passed a bill to block fund managers from utilizing ESG funds in retirement plans. The rationale for this is that retirement funds should only focus on maximizing profits.

While the bill passed through the Senate in a close 50-46 vote, it was vetoed by President Joe Biden in March 2023.