'Woke' Goes Broke: Do ESG Funds Finally Face Extinction?

Blockhead11-21

ESG ETFs were supposed to help stave off the end of the world with responsible investments. But these funds are now on life support themselves. ↑ X How ESG Investing Principles Compliment ...

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But these funds are now on life support themselves.\n\n\n\n↑\nX\n\n\n\n\nHow ESG Investing Principles Compliment ...</p>\n\n<a href=\"https://www.investors.com/etfs-and-funds/etfs/sp500-woke-goes-broke-do-esg-funds-finally-face-extinction/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>'Woke' Goes Broke: Do ESG Funds Finally Face Extinction?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n'Woke' Goes Broke: Do ESG Funds Finally Face Extinction?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-21 21:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/etfs-and-funds/etfs/sp500-woke-goes-broke-do-esg-funds-finally-face-extinction/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ESG ETFs were supposed to help stave off the end of the world with responsible investments. But these funds are now on life support themselves.\n\n\n\n↑\nX\n\n\n\n\nHow ESG Investing Principles Compliment ...</p>\n\n<a href=\"https://www.investors.com/etfs-and-funds/etfs/sp500-woke-goes-broke-do-esg-funds-finally-face-extinction/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0731783048.USD","symbol_name":"FIDELITY GLOBAL DIVIDEND \"A\" (USD) INC MONTHLY (G)","start_time":0,"source_url":"https://www.investors.com/etfs-and-funds/etfs/sp500-woke-goes-broke-do-esg-funds-finally-face-extinction/","article_id":"2485495782","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2022/04/FAB-esg-042922-adobe-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485495782","pubTimestamp":1732194018,"columns":[],"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"ESG ETFs were supposed to help stave off the end of the world with responsible investments. 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But these funds are now on life support themselves.\n\n\n\n↑\nX\n\n\n\n\nHow ESG Investing Principles Compliment Growth-Style Trading\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nHow ESG Investing Principles Compliment Growth-Style Trading\n\n\n\n\nESG, or environmental, social and governance, used to be a selling point for ETFs. But now the point is a liability — as the election hints such factors aren't a top concern for most Americans. There's also the suspicion the new administration will roll back some regulations that urge ESG principles.\nA number of ESG funds already closed this year including Flexshares ESG and Climate, X-Trackers J.P. Morgan ESG and WisdomTree US ESG, says ETF.com. And WisdomTree closed an additional two ESG funds after being fined last month by the Securities and Exchange Commission for allegedly misrepresenting the environmental merits of the funds.\n\nESG Turns Into A Bad Word In S&P 500\nMeanwhile \"ESG\" is so akin to financial kryptonite that some ETFs are purging the letters from their names.\nInstances of asset managers removing the acronym ESG or the word \"sustainable\" from surviving ETFs abound. Examples include Thrivent Small-Mid Cap ESG (TSME), whose manager said this month the fund is becoming Thrivent Small-Mid Cap Equity.\nAnd American Century Sustainable Equity ETF (ESGA) is dropping \"sustainable\" to simply become Large Cap Equity ETF. American Century is even ditching ESG in the fund's ticker symbol. The Fund will now trade by the symbol ACLC.\nNot all the ESG backlash is political. Part of it is due to a clampdown by regulators worried the names of some ETFs are misleading, says Todd Rosenbluth, head of research at TMX Vetta Fi.\n\"I believe this (dropping ESG from fund names) is more the result of the SEC's name change rule than asset managers pulling back their focus,\" Rosenbluth said.\nESG ETFs' Performance Isn't That Bad\nThe tide has turned on ESG ETFs' marketability, but their performance isn't horrible.\nA basket of six popular ESG ETFs, including funds from Vanguard and BlackRock (BLK), are up an average 23.1% this year, according to data from ETF.com and S&P Global Market Intelligence. That's not far behind the S&P 500's 24% gain this year.\nBut ironically, much of the performance driving ESG ETFs is power-gobbling AI. The largest position in one of the most popular ESG ETFs is AI giant Nvidia (NVDA). Nvidia accounts for 7.1% of the $13.9 billion-in-assets iShares ESG Aware MSCI USA ETF (ESGU). Apple (AAPL), a master of planned obsolescence also accused of being a monopoly by the Department of Justice, is No. 2 with a 6.3% weight in the portfolio.\nDon't Turn The Lights Out On ESG ETFs Just Yet\nBut amazingly, money hasn't poured out of ESG ETFs following the election, says Rosenbluth.\n\"While many of the policies in focus for ESG ETFs could be negatively impacted by the Trump Administration, investors in these funds have stayed relatively loyal in November,\" he said.\nThere are some individual investors who prioritize climate initiatives and corporate diversity, Rosenbluth said. They \"will continue to do so even if the government does not,\" he said.\nBut at the same time, don't expect large institutional investors to eagerly \"lean in\" to ESG, especially in the months leading into a new Republican administration, Rosenbluth says.\nPerformance Of Select ESG ETFs Vs. S&P 500\n\n\n\nETF\n\nAssets ($ billions)\nExpense ratio\nYTD % ch.\n\n\n\n\niShares ESG Aware MSCI USA\nESGU\n$13.9\n0.15%\n23.2%\n\n\nVanguard ESG U.S. Stock\nESGV\n$9.9\n0.09%\n22.9%\n\n\niShares MSCI KLD 400 Social\nDSI\n$4.9\n0.25%\n23.9%\n\n\niShares MSCI USA ESG Select\nSUSA\n$3.7\n0.25%\n22.0%\n\n\nBlackRock U.S. Carbon Transition Readiness\nLCTU\n$1.3\n0.14%\n22.6%\n\n\niShares ESG MSCI USA Leaders\nSUSL\n$1.0\n0.10%\n23.9%\n\n\nSPDR S&P 500 ETF Trust\nSPY\n\n\n24.0%\n\n\n\n\n\n\nSources: ETF.com, IBD, S&P Global Market Intelligence\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nFollow Matt Krantz on X (Twitter) @mattkrantz\nYOU MAY ALSO LIKE:\n\n\nMeet The Guy Who Runs A Massive $2.7 Trillion Bond Portfolio\nBe Detailed And Targeted To Raise Money\nInspirational Quotes: Columbus Short, Sam Rayburn And Others\nIBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today\nFind Winning Stocks","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485495782"}