## [# Can ESG ETFs Survive Trump? Advisors Weigh In](/sections/news/can-esg-etfs-survive-trump-advisors-weigh)
# Can ESG ETFs Survive Trump? Advisors Weigh In
The niche fund category, which has already lost some luster in recent years, isn't expected to be warmly embraced by the new president.
[](/authors/jeff-benjamin)
[By Jeff Benjamin](/authors/jeff-benjamin)
Jan 23, 2025
Edited by: Kiran Aditham
[ + Follow ](/etf/login)
Share Email LinkedIn Facebook X (Twitter)
googletag.cmd.push(function() {
googletag.display('js-dfp-tag-article_page_302x26');
});
Loading
It wasn't long ago that environmental, social, and governance investing was so popular that some asset managers were accused by regulators of exaggerating their [ESG](/topics/esg) attributes.
Even though you may not hear as much about ESG and "[greenwashing](/sections/advisor-center/report-shows-greenwashing-dip-among-esg-asset-managers)" these days, the category hasn't disappeared entirely. But new leadership in Washington, D.C. appears poised to kick ESG investing while it's down.
Common rubs against ESG investing like higher fees and lower performance continue to dog the category.
While the heyday for ESG investing came and went early during Joe Biden’s presidency, there's little reason to believe President Donald Trump will be doing much to revive and boost opportunities in the category.
“The future of ESG investing is bleak under Donald Trump,” said Sarah Maitre, founder of [Camriel Advisors](https://www.camrieladvisors.com/) in Mt. Shasta, California.
“We’ve witnessed significant divestment from ESG funds in recent years, with investment slowing in these funds during Trump’s first term,” she added. “Investors today are less focused on social-driven investing, especially since returns have not kept pace with the broader market.”
## Will Trump Kill ESG Investing?
While ESG investing can be sliced and targeted in a variety of ways, [etf.com analysis](/etfanalytics/etf-screener), which applies the MSCI ESG quality score, reveals that some of the highest-rated ESG ETFs are not delivering on performance.
For example, the [**Nuveen ESG International Developed Markets ETF (NUDM)**](/NUDM), which tops the list of screened ETFs, charges 31 basis points and gained just 5.5% last year.
Meanwhile, the fund with the second-highest score, the [**NYLI Clean Oceans ETF (OCEN)**](/OCEN), charges 45 basis points and declined by 7.4% last year.
That backdrop has created plenty of skepticism, but there are still a lot of ESG believers among the financial planning community.
“Business DEI activities will certainly be under attack, but ESG investing will survive under Trump,” said Alvin Carlos, managing partner at [District Capital Management](https://districtcapitalmanagement.com/) in Washington, D.C.
“Investors who want to align their money with their values will continue to use ESG funds,” he added. “We still use ESG ETFs for clients who are passionate about a particular issue.”
Brett Croft, owner of [Croft Financial Planning](https://www.croftfinancialplanning.com/) in Newbury, New Hampshire., views ESG as more of a cyclical strategy that can rise and fall along with large market patterns.
“Many ESG funds did well this last decade, because of large-cap growth, especially tech companies,” he said, citing the 12.7% 10-year average return of the [**iShares MSCI KLD 400 Social ETF (DSI)**](/DSI), which was only a few basis points behind the [**SPDR S&P 500 ETF Trust (SPY)**](/SPY) over the same period.
“Tech and large-cap growth should continue to do well under a Trump Presidency,” Croft said. “Just look who was seated behind the President at his inauguration,” he added, in reference to Elon Musk.
Noah Damsky, principal at [Marina Wealth Advisors](https://www.marinawealthadvisors.com/) in Los Angeles, thinks a more low-key focus on ESG might ultimately be a good thing for investors and the category.
“The strategy hasn’t received the same media buzz as in years past, and that’s a good thing because ESG has become less about clickbait and more about fundamentals,” he said. “With or without Trump, ESG investors do exist and there's a place for these strategies, however, they may represent a narrower segment of the market than previously expected.”
googletag.cmd.push(function() {
googletag.display('js-dfp-tag-in_article_unit');
});
[ + Follow ](/etf/login)
[ Jeff Benjamin Wealth Management Editor ](/authors/jeff-benjamin)
Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing,… [View Bio](/authors/jeff-benjamin)
Related Topics [Advisor Center](http://www.etf.com/topics/advisor-center-0)
[ESG ETFs](http://www.etf.com/topics/esg-etfs)
[ESG](http://www.etf.com/topics/esg)
[Environment](http://www.etf.com/topics/environment)