BlackRock and Goldman Sachs Shutter ESG And Other Thematic ETFs Amid Waning Demand

In a signal of changing investor sentiment and strategic refocusing, top asset managers such as BlackRock and Goldman Sachs, are shutting down several ETFs, many of which have an environmental, social, and governance (ESG) theme.

Also Read: Vanguard ETFs Lead 2025 With $150 Billion Inflows, Challenging Wall Street’s Old Guard

BlackRock, the largest ETF issuer globally with $3.4 trillion in U.S. assets, closed eight ETFs and six mutual funds, of which three are ESG-themed. The combined assets of the closed ETFs total approximately $109 million. Although BlackRock did not mention the lack of demand directly, management stated in the press release that they “constantly assess how our funds are meeting investors' investment objectives and the evolving needs of our clients,” which was indicative of a demand slowdown.

Goldman Sachs, for its part, shut down two thematic funds on June 18—the Future Consumer Equity ETF GBUY and the Future Planet Equity ETF GSFP—with a total of $29.7 million in assets.

Earlier this month, VanEck also announced shutting down its Green Infrastructure ETF and HIP Sustainable Muni ETF, attributing the decision to poor performance and a lack of investor interest. The funds had their last trading day on June 18, with liquidating payouts to be made around June 25.

These closures are indicative of a larger industry trend whereby asset managers are grouping underperforming or low-demand funds.

While ESG investing is a continued theme for most portfolios, the most recent round of closures indicates that not all sustainability funds have long-term staying power in an increasingly dynamic market.

Read Next:

• How A Strait Of Hormuz Shock Could Ignite A Surge In Energy And Defense ETFs

Photo: Shutterstock