BlackRock ESG Fund Hit by $1.5 Billion of Investor Outflows (1)

One of BlackRock Inc.’s largest ESG-labeled exchange-traded funds is suffering big net outflows.

Almost $1.5 billion was pulled from the iShares MSCI USA ESG Select ETF (ticker SUSA) in the past four trading sessions, according to data compiled by Bloomberg. The outflows have reduced the fund’s assets to $3.8 billion.

BlackRock declined to comment and so did officials at Finland’s Varma Mutual Pension Insurance Co., the biggest owner of SUSA shares. Varma held 7.6 million shares of SUSA at the end of September, equivalent to a 20% stake in the fund.

The SUSA withdrawals come at ...