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ESG Equity Funds Experienced Record Month of Outflows in May

  • Devotion to do-good ETFs halted after three years of inflows
  • Trend-seeking, misled traders blamed for the $2 billion rout
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Photographer: Asim Hafeez/Bloomberg
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This year’s weak performance by US stocks has forced many investors to recalibrate their portfolios. And they’re fleeing do-good strategies.

After more than three years of inflows, investors are now pulling cash out of US equity exchange-traded funds with higher environmental, social and governance standards. May saw $2 billion of outflows from ESG equity funds, according to data from Bloomberg Intelligence -- the biggest monthly cash pullback ever.