January showed solid uptake of ESG stock funds despite the poor performance of the US Technology sector, indeed inflows were higher for ESG funds than non-ESG funds.
In part the flow rates were helped by managers labelling their standard funds as ESG funds, with over 500 funds being repurposed in this way.
Genrerally, investors were not well rewarded for their faith in ESG funds, due to their dependence on Big Tech. Due to this, financials are being cited as an ideal way to hedge ESG stock funds.
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