The top holdings of many ESG funds may be surprisingly familiar. ESG funds also tend to be more heavily invested in technology stocks because the sector is one of the "cleaner" industries, according to former VettaFi financial futurist Dave Nadig. But Noack considers the idea that ESG funds only invest in clean, sustainable sectors as misleading. Global ESG funds saw their first net quarterly outflows on record in the fourth quarter of 2023, according to Morningstar. However, Nadig points out while financial advisors may have pulled back from recommending ESG funds to clients, investor interest hasn't gone anywhere.

---

Persons: DWS Group's Arne Noack, CNBC's, Dave Nadig, Nadig, Noack, hasn't, It's Organizations: Americas, Equity, Nvidia, Amazon, Microsoft, Apple