Report: Money for 1 Woke Cause Just Disappeared – Even Liberals Can’t Believe It Happened
Woke causes are struggling to make a long-lasting impact with the American people. Electric vehicle sales are down, parents don’t want leftist ideology taught to their children, and worldwide promotions to get people to buy into woke causes are faltering.
One of the biggest leftist pushes is to lure people into transferring their hard-earned money into environmental, social and governance (ESG) investments. These ESG funds claim to support ethical practices such as reducing greenhouse gas emissions and enhancing workplace diversity.
But investors have grown weary, and liberals are wondering where all the money has gone after the boom of ESG interest in 2021. ESG investments are looking more like a bust heading into 2024.
From the Daily Caller:
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.
That loss is, yes, in the billions. U.S. funds overall experienced withdrawals in the same time frame, but these losses are more like people running away from ESG. ESG suffered much more of a decline than their counterparts, facing four straight quarters of outflows. Interest in the funds has dropped off among investors due to regulatory scrutiny and concerns about returns on their investment.
By comparison, more traditional funds started in the third quarter than closed. Three ESG funds launched while 13 closed during the last three months. This is the first time in recent years that this has happened.
Appeal for ESG funds has dropped off among American investors due to increased scrutiny from regulatory agencies. Republican politicians also have accused the funds of boycotting certain industries and costing retirees their savings.
The lack of appeal among investors caused BlackRock, an investing giant, to shut down two smaller funds with several million in assets each during the three-month period. BlackRock U.S. Impact Fund and BlackRock International Impact Fund closed after just three years on the market.
The idea of an ESG fund has developed a strong political connotation and BlackRock CEO Larry Fink in June summed up how he feels about the term “ESG.”
“I’m ashamed of being part of this conversation,” Fink stated.
Shame from someone who openly promoted ESG funds and ideas likely isn’t going to rally favor among investors. Just like everything else that is woke, it looks like it’s time for ESG to be dumped like a losing stock.
Source: Daily Caller