Investors embraced sustainable funds at unprecedented rates in 2021 as the number of available funds skyrocketed in the United States, according to a new report from Morningstar.

"Sustainable Funds U.S. Landscape Report" details an array of metrics that point to the accelerating popularity of sustainable funds. Among the more striking statistics:

• Sustainable funds attracted a record $69.2 billion in net flows in 2021, a 35% increase over the previous record the year before, and
• Assets in sustainable funds landed at a record $357 billion by the end of the year – more than four times the total three years ago, delivering a clear picture of the tidal shift that has occurred in the category.

In addition, the number of sustainable open-end and exchange-traded funds available to U.S. investors increased to 534 during the year, reflecting growth of 36% from 2020. During the course of the year, 121 new sustainable funds launched, compared to just 71 the previous year.