BlackRock and Goldman Sachs shut down multiple ETFs due to lack of interest

In June 2025, major asset managers BlackRock and Goldman Sachs announced the closure of multiple exchange-traded funds (ETFs) reflecting a significant shift in investor sentiment. BlackRock, the largest ETF provider globally, decided to shut down eight ETFs and six mutual funds, three of which were themed around environmental, social, and governance (ESG) criteria. These closures collectively represented approximately $109 million in assets, signaling a potential demand slowdown attributed to the evolving needs of their clients. Goldman Sachs followed suit, closing two thematic ETFs—the Future Consumer Equity ETF (GBUY) and the Future Planet Equity ETF (GSFP)—with combined assets of $29.7 million. The decision was part of a broader trend in the investment industry where underperforming and low-demand funds are being consolidated or eliminated to streamline operations. This right-sizing reflects ongoing market evaluations and adjustments in accordance with investor preferences. Furthermore, VanEck announced the closure of its Green Infrastructure ETF and HIP Sustainable Muni ETF earlier in June, driven by similar reasons related to poor performance and declining investor interest. The last trading day for these funds was June 18, with liquidation payouts scheduled for June 25, showcasing the swift actions being taken by asset managers to adapt to market realities. These closures highlight the challenges faced by sustainability-focused investment products. While ESG investing remains a priority for many investors, these recent ETF closures illustrate that not all sustainability funds possess staying power in a complicated financial landscape. Asset managers are reevaluating their offerings to align more closely with investor demands and emerging trends.