BlackRock iShares ESG ETF suffers $4bn of outflows in one day

Analysts point to rebalancing

The iShares ESG Aware MSCI USA ETF (ESGU) faced the sell-off on 20 March, in what Morningstar has described as an "eye-popping number", according the the FT.

The iShares MSCI USA Quality Factor ETF (QUAL) had net inflows of $4.8bn on the same day, with analysts pointing to BlackRock potentially rebalancing its model portfolios. As scrutiny of ESG risk analysis increases in the US, there are thoughts as to whether the passives giant has rebalanced the portfolios to abate Republican criticism.  Revealed: BlackRock's three major themes A company spokesperson told the FT: "As we actively manage our models to capture opportunities in the market, some ETFs included in BlackRock model portfolios experience inflows or outflows, driven by advise...