Below is a summary of the key takeaways from “ESG Isn’t Dead, Its Lying Low, and the Numbers Prove It”. The full piece can be accessed here: American Conservative Values ETF Opinions
The Evolution of ESG: Why Market Data Tells a Story of Resilience and Rebranding
While there is ongoing debate regarding the future of Environmental, Social, and Governance (ESG) investing, recent financial data suggests that the sector is undergoing a significant transformation rather than a decline. Market trends indicate that while the language used to describe these strategies is changing, the underlying integration of these factors into capital markets remains robust.
By the Numbers: Continued Growth in ESG Assets
In the United States, the scale of ESG-focused investment remains substantial. Currently, there are 236 ESG equity mutual funds and ETFs, representing approximately $226 billion in assets under management (AUM).
- AUM Growth: These assets grew by 14% over the past year.
- New Capital: Critically, 5.3% of that growth was driven by new capital inflows, indicating continued investor interest beyond simple market appreciation.
- Institutional Reach: The most recent industry reports estimate total U.S. sustainable investing assets at roughly $6.6 trillion.
The Shift in Terminology
One of the most notable trends in the industry is the shift toward new branding and terminology. Financial institutions and asset managers are increasingly adopting “softer” or more technical language to describe ESG-related goals. This shift appears aimed at aligning with institutional mandates while navigating a changing regulatory and social landscape.
Common rebrands include:
- “Resilience”: Now frequently used as a catch-all term for climate-focused capital allocation and risk management.
- “Energy Transition” and “Carbon Neutrality”: Replacing phrases like “net zero” or “climate change commitments.”
- “Representation” and “Belonging”: Emerging as the preferred terms for initiatives previously categorized under Diversity, Equity, and Inclusion (DEI).
Looking Ahead: Institutional Integration
Industry analysts, including those from S&P Global and Morningstar, identify climate-transition investing, biodiversity finance, and AI ethics as emerging growth areas for 2025. Institutional investors continue to embed these priorities into long-term strategies, reframing them as “resilience strategies” or “stakeholder value creation.”
For investors and fiduciaries, the message is clear: the framework for these investments is not disappearing; it is becoming more deeply embedded in institutional processes, proxy voting guidelines, and risk committees. The focus for many remains on how these factors influence long-term value and whether capital allocation continues to prioritize shareholder returns within these evolving frameworks.
Bill Flaig is the co-Founder of the American Conservative Values Fund (ACVF). ACVF is an actively-managed ETF with over $130M in AUM as of 12/17/25.
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The views expressed are those of the authors as of 12/17/25 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.
Important Disclosures
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus and Summary Prospectus, which may be obtained by visiting ACVETFS.com. Read the prospectus and Summary Prospectus carefully before investing. [Link to Prospectus]
An investment in the Fund is subject to risks, including the possible loss of the principal amount invested. Overall stock market risks may affect the value of individual securities in which the Fund invests. The Fund is actively managed, and the adviser’s investment decisions impact the Fund’s performance. The equity securities in which the Fund invests will generally be those of companies with large market capitalizations.
The ACVF Fund is distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Ridgeline Research, LLC.
