The iShares ESG Aware MSCI USA ETF (ESGU) faced the sell-off on 20 March, in what Morningstar has described as an "eye-popping number", according to the FT.
The iShares MSCI USA Quality Factor ETF (QUAL) had net inflows of $4.8bn on the same day, with analysts pointing to BlackRock potentially rebalancing its model portfolios.
As scrutiny of ESG risk analysis increases in the US, there are thoughts as to whether the passives giant has rebalanced the portfolios to abate Republican criticism.
A company spokesperson told the FT: "As we actively manage our models to capture opportunities in the market, some ETFs included in BlackRock model portfolios experience inflows or outflows, driven by advisers who trade their clients' portfolios in line with BlackRock's models."
The spokesperson declined to comment on the trades and nature of the flows.
This piece was originally published on International Investment's sister publication Sustainable Investment.
