2023 was a tough year for US sustainable funds: Morningstar report 

The year 2023 was “the worst calendar year on record” for US sustainable funds, according to a new report by Morningstar. Investors pulled $5 billion from the funds in the fourth quarter for a total of $13 billion last year. The ongoing political scrutiny in the US and the challenges specific funds face also contributed to this trend. 

The report noted that equity funds underperformed the most, with 32% of sustainable equity funds ranking in the bottom quartile compared to their peers.