ESGU - ESG ETFs gain ground ironically with support of big oil

Many environmental, social, and governance exchange traded funds have gained ground over the course of 2021, which is great news for market participants.Furthermore, over the same period, oil moved to the topside, crossing over $65/bbl from its beginning of the year price of $48/bbl, rising nearly +35.00% before coming down in today's selloff. Interestingly enough, many ESG related ETFs have ownership in names that most would consider "non-ESG."Names like ExxonMobil, Chevron, and ConocoPhillips are stuffed into many ESG ETFs, and ironically, they have helped support the underlining ETF.Looking at the example of the largest ESG ETF, iShares ESG MSCI USA ETF (ESGU), it has holdings of ExxonMobil, Chevron, and ConocoPhillips weighted at 0.67%, 0.55%, and 0.19%. Taking it a step further, these three energy names have year-to-date returns of +42.99%, +26.58%, and +32.86%, respectively.Interestingly, the largest ESG ETF has received support from these three energy names along with ten other energy stocks. See a complete breakdown

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ESG ETFs gain ground ironically with support of big oil