ESG & Investing
ESG Fund Closures Pile Up as Do-Good Investing Takes Back Seat
- Cathie Wood’s transparency-themed fund is latest set to close
- ESG ETFs make up disproportionate share of closures this year
Source: Getty Images
This article is for subscribers only.
A deluge of do-good ETFs once flooded US exchanges and drew in billions. But as investors contend with fears of a recession, the trend is reversing and more of these funds are closing up.
Cathie Wood’s Ark Transparency ETF (ticker CTRU) is the latest ESG exchange-traded fund set to shutter, bringing the total to seven this year. While do-good funds were popular during the post-pandemic bull market when virtually every strategy surged, they now account for 15% of all US ETF closures this year, according to data compiled by Bloomberg. They only made up about 4% of the funds in the industry at the start of the year.