ESG ETF takes a big hit in Trump's first 100 days

Although the Trump administration has rudely carried out equity ETFs in the first 100 days ESG Exchange-traded funds.

Investors have deducted $623.9 billion in net money from 10 largest ESG funds over the past three months, which began shortly after Trump was sworn in on January 20.

The largest, $12.5 billion Ishares ESG Aware Msci USA ETF (ESGU)According to FactSet data, $420 million has been spent. BlackRock Fund has dropped 8.7% over the past three months, with a slight decline in the 7.9% drop in the company's flagship S&P 500 Fund. Ishares Core S&P 500 ETF (IVV).

President Donald Trump cuts the administration’s plans to promote environmental, social and governance causes, such as diversity and social improvement, and drives further development of fossil fuels, with investors fleeing ESG funds that collectively hold billions of dollars in assets.

These funds have become popular over the past few years, providing investors and institutions with opportunities to bet on companies that promote social and environmental well-being. Still, they are under attack by conservative politicians and state officials starting in 2022, and President Trump's international aid, lawsuits against liberal institutions and lawsuits promoting fossil fuels have further eroded their visibility.

“The Trump administration’s public contempt for the Diversity, Equity and Inclusion Movement (DEI) Movement has undoubtedly not helped the ESG investment theme,” said Kent Thune, senior research analyst at ETF.com. “While I don’t think the socially responsible investment has died, I don’t think it’s back to the top.”

Texas, Florida, West Virginia, Kentucky and Oklahoma have targeted ESG, banning government pension funds from investing in the funds in some cases.

7 out of the top 10 ESG funds come from New York Black Stonehis CEO Larry Fink downplayed the role of ESG when he came under fire. Most top ESG funds have had little inflows since Trump was sworn in, the second largest, $9.5 billion Vanguard ESG US Stock ETF (ESGV), Increased by $64.6 million.

3-month net flow of ESG ETF

Source: Fact Set

Nevertheless, they were canceled by a net outflow of $134.3 million Ishares MSCI USA ESG SELECT ETF (SUSA) and $185.3 million outflow ISHARES MSCI KLD 400 Social ETF (DSI).