Woke Investing Takes Massive Hit as Investors Lose Interest: Report

Environmental, Social and Governance (ESG) funds lost billions in the third quarter as demand among investors plummeted, according to Morningstar.

Investment funds focused on sustainability goals have lost $2.7 billion in the third quarter of 2023 and they have been closing faster than they are opening during the same period, according to Morningstar. U.S. funds experienced withdrawals overall, but ESG funds experienced a significantly worse decline than their counterparts, facing four straight quarters of outflows as investors have lost interest due to regulatory scrutiny and concerns about returns.

Investors have pulled out a whopping $280 billion from "green stocks" globally since its peak in August 2022.

Looks like investors have finally figured out that ESG was just a giant go woke go broke scheme. pic.twitter.com/OBL0q4iZwC

— WhaleWire (@WhaleWire) October 21, 2023

ESG funds lost .85% of their value while funds in general lost .02% in the past three months, according to Morningstar. More traditional funds started in the third quarter than closed.

Three ESG funds launched while 13 closed during the three-month period, according to Morningstar. (Read more from “Woke Investing Takes Massive Hit as Investors Lose Interest: Report” HERE)

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