European exchange-traded funds with a focus on ESG investing saw a substantial decline in inflows in the first quarter amid what Morningstar called “an existential crisis”. According to the Financial Times, net inflows into these funds totaled 7.1 billion euros, or $7.62 billion, in the first three months of the year. This was down from 13.8 billion euros in the final three months of 2023, equal to $14.8 billion. As a result, the portion of ESG fund inflows during the period fell to 16% of total net flows into exchange-traded funds,…
