“Sustainable funds” have peaked?

Cash flows into US sustainable funds plummeted last year as the broader market took a beating and anti-ESG crusaders targeted money managers including BlackRock Inc. for “woke capitalism.”

ESG exchange-traded funds in the US aren’t faring any better in 2023.

ETFs in the US with environmental, social and governance goals had net outflows of $772 million in January, compared with $953 million of inflows for the first month in 2022, according to data compiled by Bloomberg. Some of the largest withdrawals last month came from funds managed by BlackRock, Invesco Ltd. and Vanguard Group.

BlackRock had zero net flows into its sustainable products in the US last year, according to a person with knowledge of the matter.

Here is more from Silla Brush at Bloomberg.  The evidence mounts…