Investor appetite for sustainable funds continues to wane amid ESG backlash.

In 2024, US sustainable funds experienced increased outflows, rising to $19.6 billion from $13.3 billion in 2023. Returns lagged those of conventional peers, political scrutiny persisted and greenwashing concerns endured.

Morningstar’s annual report examines U.S. sustainable fund inflows and performance. With specific fund flows data, asset managers can assess the competition and find pockets of opportunity.