Goldman Sachs Shutters Its "Paris-Aligned" Climate ETF

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by Tyler Durden
Wednesday, Dec 13, 2023 - 04:25 PM

Another day, another ESG pipe dream falling victim to the reality that we've been pointing out for years: "green" investing and ESG is a grift.

This week the victim is the Goldman Sachs ActiveBeta Paris-Aligned Climate U.S. Large Cap Equity ETF, which we're certain you didn't know existed until you just read about it today. 

The idea of the ETF was to provide investment results that closely corresponded to the performance of the Goldman Sachs ActiveBeta Paris-Aligned U.S. Large Cap Equity Index. 

The ETF is shutting down, per a Goldman Sachs press release out this week. The release says that "the Fund’s Board of Trustees, at the recommendation of GSAM, has approved a plan of liquidation for the Fund". 

"The Fund will begin the process of liquidating portfolio assets and unwinding its affairs in an orderly fashion over time," the release says. 

Bloomberg ETF expert and friend of Zero Hedge Eric Balchunas pointed out on Twitter that "there was just way too much supply for the demand" with the ETF and that "it's going to get worse too".

Balchunas says the ETF only took in $7 million over the course of 2 years. 

Recall, we have been following the recent implosion of "green" investing and ESG that has taken place this year. We wrote just days ago about Jeff Ubben - who is shuttering his sustainability fund - calling traditional climate summitry an “echo chamber” of diplomats. 

Less than a week before that we noted that $30 billion has been shaved off the value of clean energy stocks over the last 6 months. 

We also pointed out weeks ago how the ESG grift was reaching endgame after Markus Müller, chief investment officer ESG at Deutsche Bank's Private Bank stated that sustainability funds should include traditional energy stocks, arguing that not doing so deprives investors of a prime opportunity to invest in the transition to renewable energy.