U.S. ESG Funds Suffer Worst Quarterly Outflows in More Than 5 Years

Investors yanked the most money out of U.S. sustainable funds in more than five years last quarter, withdrawing a net nearly $6.2 billion to round out a tough year for environmental, social, and governance strategies.

The net flow of money into U.S. sustainable mutual and exchange-traded funds has diminished steadily since it hit a record high in the first quarter of 2021, according to a new report from


The decline comes as inflation, rising interest rates, and lingering fears of recession have weighed on markets and investor sentiment.