NEW YORK, NY — BlackRock announced Wednesday that its $4.2 billion U.S. Sustainable Energy ETF will be rebranded effective immediately as the BlackRock Real American Energy ETF, a change the firm described in regulatory filings as “a refresh” and which involved no movement whatsoever in the fund’s actual holdings, the top of which remains, as it has for six years, Microsoft.
The reshuffle, timed to the week before Earth Day, follows similar moves by Vanguard and State Street, who have collectively scrubbed the words “sustainable,” “climate,” “ESG,” “responsible,” and in one case “future” from 84 fund names since January, replacing them with combinations of “American,” “Strategic,” “Liberty,” and “Core.”
“We listened to our clients, and our clients told us they wanted the same exposure to large-cap technology stocks, just under a name that wouldn’t get them yelled at on a podcast,” said Brennan Whitlock, BlackRock’s newly created Head of Portfolio Nomenclature, a position that did not exist on March 1. “Nothing about the fund has changed except the part of the fund people read.”
Internal documents reviewed by industry analysts indicate that the fund’s second-largest holding, Apple, has been reclassified from “low-emissions enabler” to “American manufacturing partner,” despite assembling roughly nothing in America. Nvidia, the third holding, has been moved out of “clean computing” and into a new internal category called “energy-adjacent,” a designation a BlackRock spokeswoman defined as “uses energy, broadly speaking.”
The fund’s actual energy holdings, at 3.1%, were not adjusted, though the prospectus now refers to them as “the heart of the portfolio.”
A spokesperson for the Sierra Club called the rebrand “shameful” and “a textbook greenwashing reversal,” before being asked whether the Sierra Club’s own pension fund was, by any chance, invested in the ETF. The spokesperson declined further comment, citing a meeting.
Under SEC guidance issued last month, funds may no longer use the word “green” unless at least 12% of holdings are demonstrably green, a threshold the BlackRock fund cleared in 2023 only after counting John Deere as agriculture and Costco as “bulk efficiency.”
Reached by phone, one retail investor in Tampa said he had purchased the fund in 2021 specifically because it was sustainable, and would now be selling it because it was no longer sustainable, and would likely be buying it back in six weeks under whichever name it had at that point.
At press time, Whitlock confirmed the firm was already drafting its 2026 product, the BlackRock Liberty Patriot Eagle Energy Fund, which he described as “essentially the S&P 500, but with a flag.”