A second Donald Trump presidency could mean good things for all manner of assets, from bitcoin to Tesla (US:TSLA) shares and US equities more generally. But while the market believes it has identified many winners already, some forms of investment look set for a difficult few years.
That's certainly one take when it comes to ESG investing, an approach that has already struggled in recent years in the face of higher interest rates. The prospect of Trump rolling back climate regulations could mean a tougher time for these investments. In the meantime, some funds with a very different ethos are springing up, including an 'anti-woke' ETF set to launch in the US next year.
Performance issues of recent years have already led to investors redeeming assets. Investment Association data shows that the funds it badges as 'responsible' had a net outflow of £3bn in 2023, with that trend continuing in the first 10 months of this year (figures for the final months aren't yet available). Some trusts have now opted to throw in the towel, with both Jupiter Green (JGC) and Menhaden Resource Efficiency (MHN) unveiling proposals to wind up as 2024 drew to a close.