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Many Big ESG Funds Are Just Glorified Market Trackers

RF markets stocks red crash
Photographer: interstid/iStockphoto

In the recent market tumult, the largest ESG-focused exchange-traded funds in the U.S. are again showing that they are little more than market-trackers—with even worse performance.

The iShares ESG Aware MSCI USA (ticker ESGU), which claims to invest in U.S. companies with positive environmental, social and governance characteristics, has dropped 5.3% since the start of the year, slightly worse than the 4.6% decline of the S&P 500.