ESG criticism has become increasingly louder in the U.S. Against this backdrop, anti-ESG funds are on the rise. While these strategies come in all shapes and sizes, they have one common aim—providing an alternative to ESG investing. Amid the ESG backlash, what do asset managers need to know about this evolving space?

In our study, we identify and analyze 26 anti-ESG funds in the Morningstar Direct database and group them into five distinct categories: Vice, Anti-ESG, Political, Renouncer, and Voter funds. By understanding the potential impact of these investments, you can better help your clients make more informed decisions.