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ESG Funds Face Epic Breakup as Trump's Return Spooks Green Dreams

Reading time: 2 min • May 8, 2025, 01:45 AM (UTC)

Key Points

  • Sustainable investments are struggling, losing $8.6 billion ...

Green investments are having their own version of a bad hair day - except this one's lasting an entire quarter. While sustainable investing used to be Wall Street's golden child, it seems investors are now treating it like yesterday's kale smoothie.

The Not-So-Sustainable Sustainability

Morningstar's latest report shows sustainable funds took a nosedive in Q1 2025, hemorrhaging $8.6 billion. That's quite the reversal from last year's cozy $18.1 billion inflow. Even Europe, typically the tree-hugging champion of ESG investing, saw $1.2 billion walk out the door - a first in recorded history...

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