Anti-ESG Funds Make Noise

As of March 2023, 26 anti-ESG funds have been identified in the Morningstar Direct database and grouped into five distinct categories: Vice, Anti-ESG, Political, Renouncer, and Voter funds. These groupings were determined using prospectus language, proxy-voting policies, and marketing materials, but the lines between these categories can be blurred, making classification challenging.

In this report, a broad approach was taken to define the group of funds, including searching for funds in news articles, social media, and consulting industry participants. It is important to note that some fund companies may not consider themselves as opponents of ESG investing, while some anti-ESG advocates might have been excluded.