US President Donald Trump holds letter to the UN stating the US withdrawal from the Paris Agreement during the inaugural parade inside Capital One Arena, in Washington, DC, on January 20, 2025. Investors have continued to pull money from so-called ESG funds in early 2025 amid an "intensifying" backlash fueled by President Trump's "anti-climate agenda" and his administration's policies targeting diversity, equity and inclusion initiatives, according to a new Morningstar report. Also known as socially responsible, sustainable, impact or values-based investing, "environmental, social and governance" funds let people invest according to certain values like climate change or corporate diversity.

Investors withdrew $6.1 billion from ESG funds in the first three months of 2025, after yanking out $4.3 billion in Q4 2024, according to Morningstar. More from Personal Finance: Consumers are spending as trade wars raise recession risk Where young adults are most likely to live with parents Consumers making financial changes in response to tariffs The exodus in Q1 marked the 10th consecutive quarter of outflows. "The continued loss of appetite among US investors for sustainable funds can be partly attributed to an anti-ESG backlash, which has intensified since the return of President Trump to the White House," according to the report.

As of the end of Q1, U.S. investors held $330 billion in ESG funds, about 10% of the global total.