Environmental investing demand is pushing green ETFs toward

Environmental investing demand is pushing green ETFs toward record AUM, with BlackRock’s ESG funds adding $1.4 billion in inflows last month. Share price stability among top holdings like Ørsted and Enphase has encouraged retail investors to hold through recent volatility, expecting long-term appreciation fueled by structural climate policy tailwinds. “A lot of people, regardless of where they’re at ideologically or politically, see the value in using private sector capital to address social and environmental needs,” said Bouri. Much of the once enthusiastic chatter around environmental, social, and governance-based investing from just a few years ago has died down in 2025, replaced in some areas by hostile commentary and policy antagonistic to the strategies associated with it. While many believe this to be a US-specific phenomenon, negative feelings about sustainable investing come from individuals in other parts of the world, as well. All of this led some to theorize that the topic will fade into obscurity, with the investment world content to leave this controversial subject behind and move on to the next set of topics du jour. Wind energy producers within environmental investing indices recorded a modest 1.2% uptick, supported by declining offshore turbine costs. Fund managers expect profit margins to widen amid large-scale procurement deals, particularly in Asia-Pacific markets. Valuation models are being revised upward in anticipation of favorable Q3 capacity data.