ERTH - World's largest ESG ETF saw $5B exit in March leading all ETFs

2023-03-29 08:38:32 ET

With the end of March rapidly approaching, the world's largest ESG exchange traded fund has experienced the largest outflow during the month.

The iShares ESG Aware MSCI USA ETF ( NASDAQ: ESGU ), with $13.82B assets under management, has led all exchange traded fund outflows for March, as the ETF has seen $5.25B head for the door.

ESGU has 317 holdings, led by megacap giants Apple ( AAPL ), Microsoft ( MSFT ), and Amazon ( AMZN ). These names together represent more than 15% of the fund.

Nate Geraci, president of the ETF Store told Financial Times “ESG ETF inflows have waned over the past year due to a nasty combination of underperformance, political backlash and investors generally questioning the overall merits of such an approach.”

“It’s certainly plausible that BlackRock was getting some questions on the inclusion of ESG ETFs in their models and decided to cut bait.”

Moreover, ESGU has not been the only ESG ETF to experience cash retractions on the month. Other funds focused on environmental, social and governance issues that have observed investor outflows as well. These include the likes of:

• Invesco MSCI Sustainable Future ETF ( ERTH )
• Invesco Solar Portfolio ETF ( TAN )
• iShares S&P Global Clean Energy Index ETF ( ICLN )
• Global X Wind Energy ETF ( WNDY )

ETF fund flow data is per ETF.com .

In broader market news, while the market indices edged lower on Tuesday, things appear to be turning around in the premarket session as the major averages are in the green on Wednesday.

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