Per Morningstar’s new report, U.S. sustainable investment funds posted nearly $3 billion of net inflows in Q2 2026, turning positive for the first time in almost four years after 14 straight quarters of outflows, with total assets jumping 13% to a record $398 billion driven by market gains and investor demand focused on power infrastructure, energy transition and passive vehicles—one smart grid ETF alone drew $3.1 billion to offset $3.6 billion in redemptions from active funds; globally (excluding China), sustainable funds saw $3.7 billion net inflows, the second consecutive quarter of positive flows, led by Europe’s $3.5 billion inflow while Asia, Canada and other regions recorded outflows, pushing global sustainable fund AUM to a fresh high of $3.7 trillion with Europe accounting for 84% and the U.S. only 11% of the total, and global new sustainable fund launches rose to 32 (16 in Asia,13 in Europe,3 in the U.S.) yet remained sluggish compared with Q4 2025.
Source: https://www.esgtoday.com/u-s-sustainable-fund-flows-turn-positive-for-first-time-since-2022-morningstar/