Investors withdraw billions from sustainable funds as performance lags
- Record $13 billion pulled from U.S. sustainable funds in 2023
- Poor performance and backlash against ESG investing cited as reasons
- Sustainable equity funds lagged behind conventional peers
- Clean-energy stocks suffered as sector faced challenges
- Republican lawmakers in New Hampshire introduced bill against ESG criteria
- BlackRock’s iShares ESG Aware USA ETF saw significant outflows
- Assets in sustainable funds climbed to $323 billion at end of 2023
Investors pulled a record $13 billion from U.S. sustainable funds in 2023, citing poor performance and backlash against environmental, social, and governance (ESG) investing. Sustainable equity funds lagged behind their conventional peers, while clean-energy stocks faced challenges. Republican lawmakers in New Hampshire even introduced a bill against using ESG criteria in state investment funds. BlackRock’s iShares ESG Aware USA ETF saw significant outflows, but assets in sustainable funds still reached $323 billion at the end of 2023.
Public Companies: Morningstar (Unknown), iShares (Unknown), Microsoft (Unknown), Nvidia (Unknown), Invesco (Unknown), BlackRock (Unknown), MSCI (Unknown)
Private Companies:
Key People: Alyssa Stankiewicz (Associate Director for Sustainability Research at Morningstar)
Factuality Level: 7
Justification: The article provides information about the record outflows from U.S. sustainable funds in 2023 and the reasons behind it, such as poor performance and backlash against ESG investing. It also mentions the specific funds that experienced outflows and the factors that contributed to their performance. The article includes quotes from an associate director at Morningstar and mentions political debates and legislation related to sustainable investing. However, the article lacks specific data and analysis to support some of its claims, and it does not provide a balanced perspective by including viewpoints from other experts or investors.
Noise Level: 6
Justification: The article provides information on the outflows from U.S. sustainable funds in 2023 and the reasons behind it, such as poor performance and backlash against ESG investing. It also mentions the impact of higher interest rates on clean-energy stocks. However, the article lacks in-depth analysis and does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the outflows from U.S. sustainable funds, which may impact the performance of these funds and the companies they invest in.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the outflows from U.S. sustainable funds and their performance. However, there is no mention of any extreme event.
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