ESG is a criterion used to evaluate companies based on their environmental, social, and governance management.

20 Best ESG Funds to Invest for Impact

Q: How Many ESG Funds Are There?

In 2020, there were more than 800 ESG funds identified in the US by the SIF foundation. Together, these funds make up around $3 trillion in asset values.

Q: Are ESG Funds Worth It?

Yes, the investment market is witnessing exponential growth in ESG funds’ performances. That’s why ESG funds are not only worth it in terms of responsible and ethical implications, but they also provide profitable returns on investment.

When it comes to choosing the best ESG funds, it’s not an easy task. With a plethora of high-performance choices out there, you can easily get confused. Go through my list along with a detailed selection guide to make the ideal choice for yourself.

Not everyone considers material or financial benefits when considering investment options. With increasing threats to the environment and human society, many investors are looking for socially responsible funds to make a difference.

Believe it or not, investments in ESG funds skyrocketed in the last decade, moving from $12 trillion in 2012 to $30 trillion in 2018.

Besides that, a recent survey shows that 95 percent of all millennial investors are looking for ESG funds to invest their earnings. This growth rate not only shows the popularity of socially responsible investing funds but also their profitability in the long run.

If you want to follow this trend but are confused about how to do ESG investing, I’ve got you covered. I’ve rounded up this list of the best ESG funds to kickstart your ESG investing portfolio immediately.

Table of Contents

What are ESG Funds?
Why is ESG Investing Important?
How to Choose the Right ESG Funds
Pick Between Active or Passive Funds
Choose Your Area for Impact
Demand An Impact Report
List of Best ESG Funds
ESG ETF Funds
ESG Mutual Funds
ESG Bond Funds
Table of the Best ESG ETF Funds
Frequently Asked Questions (FAQs)
What is an ESG Fund?
How Many ESG Funds Are There?
What Does ESG Mean?
Are ESG Funds Worth It?
What Are the Best ESG Funds?
Final Words

What are ESG Funds?

Before starting with my list of top ESG funds, here’s a short introduction for beginners new to the concept. In a nutshell, ESG funds are investment options that are evaluated in three main areas.

Environmental—This aspect assesses issues like sustainable use of natural resources and sensitivity to ecological threats. For example, a company that works to reduce its carbon footprint or restore biodiversity would be graded well in this section.
Social—The social aspect of ESG funds grades companies based on how they treat their supply chains and workforce. For example, it checks whether employees face gender or racial equality or whether the supply chains are associated with child labor.
Governance— Lastly, this part scrutinizes the decision-makers and major stakeholders in companies. For instance, if there’s a serious lawsuit against the owner or a bad criminal reputation.

Now that you understand ESG investing options, let’s discuss ESG funds. First of all, ESG funds are completely different from individual stocks. Instead, they are a group of stocks from different companies that you can purchase to minimize risk and diversify your portfolio.

Look at it this way. If you invest in a single company, even an ESG-compliant one, you put all your eggs in one basket. ESG funds help provide a hedge against market risks.

Unlike other mutual, ETF, and bond funds, ESG funds only include companies that comply with their principles. That’s why, if you buy an ESG fund, not only are you making a safe investment choice but doing your bit to promote a sustainable and responsible society.

See Related: Best Investments for Young Adults

Why is ESG Investing Important?

I know what you’re thinking. Nobody invests their money relying entirely on sustainable outcomes. Everyone looks for material returns in one way or the other.

So why should you go through the hassle of ESG investing when you can easily earn high returns on other investments? The answer is simple. Statistics show that the ESG investment sector is continuously growing due to increased awareness about environmental and social issues.

If you’re a prudent investor, you won’t undermine its growth potential shortly. If you’re an investor planning to stay in the game for the long run, diversifying your portfolio with ESG funds is an essential step.

On the other hand, humans face grave issues that might threaten our existence altogether. All of these issues need immediate intervention.

That’s why, as investors, we must encourage ESG funds and responsible investments to bring an evident change in environmental and social policies worldwide.

How to Choose the Right ESG Funds

Now that you know what ESG funds are and why you must invest in them as soon as possible, one task remains. The US SIF Foundation estimated that more than 800 investment companies have ESG assets in the current year. Taking ETFs and mutual funds into account, choosing the ideal option for yourself from the many available options is quite challenging.

That’s why, before I list out the top ESG funds, here’s a short guide for choosing the ideal choice for yourself so you can pick one that fits your needs. Also, know the best impact investing apps for ESG investors to learn why they are good options.

Pick Between Active or Passive Funds

Depending on your investment goals, experience, and current tax situation, you must decide whether to use active or passive ESG funds.

While passive funds may seem attractive because of their low price range, actively managed ESG funds offer many benefits. For starters, even though actively managed funds underperform their passive counterparts in the stock market, they are available in abundance.

So, if you’re looking for a reliable fund focused on sustainability and ESG with reputable names, you should consider actively managed funds.

However, if you’re a beginner and want to earn good revenue with a relatively small initial investment, passively managed funds are the ideal option.

Choose Your Area for Impact

This is perhaps the most critical factor in choosing an ideal ESG fund. Conduct thorough research about your particular ESG fund’s sustainable impacts before checking the investment amounts and potential returns.

Let’s say you’re a person of color who wants to promote workplace equality and inclusion. In this case, you should go for funds that benefit companies that aim to achieve a similar goal.

List the missions you would like to contribute to with your hard-earned money. Now, before going for an ESG fund, check whether their list of companies aligns with the mission you have in mind.

This way, you will earn good investment returns and sleep better at night, knowing you’re doing your bit for the world you live in.

Demand An Impact Report

The one major flaw in ESG investing trends is that they are not yet standardized. This means that the level at which a company is deemed sustainable differs in every country and varies from organization to organization.

That’s why the best way to know whether your investment is making a difference is by demanding an impact report whenever you add a new fund to your portfolio.

For example, suppose you’re investing in an ESG fund while considering its responsible policies towards the environment. In that case, you can ask for statistical data about each company’s carbon footprint or efforts toward renewable energy.

You can easily ask any ESG fund managers to present this impact report. This will help put things into perspective for you.

See Related: Best ESG Target Date Funds

List of Best ESG Funds

As I mentioned, ESG funds are abundant in the stock market. Although this is good news for active investors striving for social and environmental impact, it makes the choice difficult for beginners.

If you know the mission you want to focus on but find it confusing to choose an ESG fund that’s right for you, don’t worry. Below, I’ve listed some of the best ESG funds and their salient features to help you make the right choice quickly.

ESG ETF Funds

ETFs or exchange-traded funds are some of the best options for newbie investors. That’s because ETFs allow you to buy or sell your holdings at any point and reflect the market reality sooner than actively managed funds.

Similarly, because most ETFs are passively managed, they are cheaper than other ESG fund options. Despite being relatively new to mutual funds and other investing techniques, ETFs provide efficient tax policies.

If these aspects attract you, here are some options for the best ESG ETFs.

First Trust ISE Global Wind Energy Index Fund (FAN)

FAN, an ESG ETF fund issued by First Trust, works to regulate the Clean Edge Global Wind Energy Index. This system provides the exposure needed for companies supporting renewable wind energy.

Established in 2008, this ETF fund manages over $500 million in assets. In addition to companies dedicated to developing wind power, the ETF includes companies involved in other operations for portfolio diversification.

Some of its well-known holdings include Northland Power, a power generation company based in Canada, Siemens Gamesa Renewable Energy, and a wind power plant manufacturing company from Denmark named Vestas Wind Systems.

Most importantly, the ETF promises a dividend of 0.80% annually, making it a profitable option for investors looking to contribute to the renewable energy sector.

2.iShares S&P Asia ETF (AIA)

This ETF issued by iShares works to track the Asia 50 index by regulating the performance of leading companies from well-known Asian countries. These countries include China, Singapore, Hong Kong, South Korea, and Taiwan.

Created in 2007, the ETF has more than $3 billion in assets and promises an annual yield of 0.98%. Its best part is that it allows impact investors to formulate a blended investment strategy.

That’s why it manages a wide array of stocks simultaneously, providing value and growth. One of its central holdings includes Tencent Holdings from China, which provides internet services, mobile gaming, and e-commerce.

Its portfolio ranges from popular companies like Taiwan Semiconductor Manufacturing to Samsung Electronics from South Korea.

See Related: Best Charles Schwab ESG Funds

3. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID)

This is another ESG ETF issued by First Trust. Widely known as GRID, this ETF tracks the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index. This is the ideal ETF option if you’re an investor looking to invest your funds to promote electrical energy use.

This ETF mainly funds companies that work to maintain, operate, and innovate in the electric field. These operations concern electric grid technology, networks, energy storage, meters, and other devices.

This ETF was issued in 2009 and currently manages assets worth approximately $2 million. As an investor, you can expect to earn 0.64% in annual dividends.

Most importantly, this ETF provides a hedge against market fluctuations by investing in growth and value stocks. Some salient names from its holdings include Aptiv PLC and Johnson Controls International.

See Related: Best Banks for Low-Income Earners

4. Amundi MSCI World ESG Leaders Select UCITS ETF (SADW)

This ETF was launched in 2020 by Amundi. Known as the SADW, this ETF provides the required global exposure to large-cap and mid-range stocks.

Moreover, its reach extends to more than 23 developed countries globally, regulating companies with high ESG scores. Along with that, the SADW ETF does not include companies involved in the operation of drugs, tobacco, weapons, alcohol, and gambling.

It scrutinizes every company it adds to its portfolio using the MSCI-designed ESG scoring system, ensuring that its investors fund only impact industries. Most importantly, the companies with the highest ESG score have a 50% market cap in the SADW ETF.

Some of its well-known holdings include Proctor Gamble, Microsoft, and NVIDIA.

5. HSBC Emerging Market Sustainable Equity UCITS ETF (HSEF)

If you’re an investor interested in green funds, this ETF launched by HSBC is the ideal option. Created in 2020, the ETF works by tracking each of its companies through the Low Carbon Emissions Select Index.

To ensure the reliability and transparency of the investing process, the ETF screens each company using a three-step method. In the first step, any company involved in malicious activities related to alcohol, tobacco, or weapons is excluded.

The second step includes evaluating its ESG scores, emphasizing its annual carbon footprint reduction. Lastly, the last step excludes companies that comply with UN regulations.

Generating a five-year return of more than 50%, the ETF’s significant holdings include Alibaba, Taiwan Semiconductor Manufacturing, and China Mobile.

6. SPDR S&P 500 Fossil Fuel Reserves Free ETF

If you’re looking to impact the environment with your hard-earned money, you can invest in companies that reduce fossil fuel use. By joining the SPDR S&P ETF, you can exclude all the companies with fossil fuel reserves in any form from your investment portfolio.

This would mean excluding all companies that use natural gas, crude oil, or coal, leaving you with a narrow investing portfolio. However, the ETF has churned out around 4.5 percentage points in the last few years and has shown a notable performance in the sizeable blended market category.

Investing through ETF will help you sleep better at night and provide profitable dividend yields of up to 1.4% annually.

7. Nuveen ESG Large-Cap Value ETF

Most investors in the ESG sector are concerned about their investment’s long-term value in the market. This ETF by Nuveen works to invest in high-quality companies with a lower risk of market degradation.

This means the ETF only includes thoroughly vetted companies that can withstand turbulent market conditions. With a current managed asset value of around $700 million, the ETF is an ideal option for those looking for safe ESG investment funds.

The majority of the ETF’s holdings are in healthcare and Intel. However, management ensures that no stock accounts for more than 3% of its holdings, which helps mitigate investors’ market risk.

With initial expenses of around 0.35%, the ETF is a promising option that brings 1.5% in dividend yields every year.

8. SPDR STOXX Europe 600 ESG Screened UCITS ETF (ZPDX)

The SPDR STOXX Europe 600 ETF provides a reliable option for investors aiming for socially responsible investing. The ETF excludes all companies involved in unethical practices and unsustainable environmental policies.

The fund tests the companies before including them in its investment portfolio using the Sustainalytics Global Standards. It particularly omits companies connected with weapon manufacturing, tobacco production, and coal mining.

Despite the thorough screening, the fund includes around 578 holdings. Some of the prominent ones include Nestle, Novartis, and ASML Holding.

9. Franklin S&P 500 Paris Aligned Climate UCITS ETF (USPA)

The Franklin S&P 500 ETF is one of the most accessible ESG funds in Europe. Founded by Franklin Templeton to fill the niche that arose after the Paris Agreement, this ETF aims to reduce climate change impacts.

The ETF includes around 400 stocks from various companies with a similar outlook on climate change and reducing carbon emissions. USPA follows the standard ESG selection based on the benchmark created by the Paris Agreement. Besides that, the ETF helps you exclude companies using non-renewable energy sources such as natural gas, oil, and coal.

Although it launched in early 2020 and has no performance history, it generated 10.6% revenue from July to November. However, its environmental scores of 62, 55, and 51 in social and governance scores make it a profitable option for investors looking for long-term ESG funds.

ESG Mutual Funds

Mutual Funds work quite differently than ETFs. When you invest in mutual funds, you deal directly with the companies that manage the funds.

Although most mutual funds are actively managed, they have a specified holding period and a high price range, which might be a turn-off for market beginners.

However, the high price range gives you hands-on research, analysis, and data regarding your asset’s performance, which is a huge plus if you aim to make an impact. Here are some ESG mutual fund options for you to consider.

10. Vert Global Sustainable Real Estate Fund (VGSRX)

If you want to include real estate investment options in your portfolio, this mutual fund is easily the best option. Typically, it is quite challenging to find ESG investing funds in the real estate sector, and the VGSRX is one of the leading funds in the niche.

Launched by Sam Adams, the CEO of Vert Asset Management, the fund works to provide exposure to companies looking to incorporate green practices into building structures.

Ultimately, the fund selects companies that take specific measures to reduce their carbon footprint in the real estate sector and contribute positively to the environment. The fund also strategically uses the popularity of green funds to generate steady profits for its investors.

They own numerous investment trusts, and REITs are diversified across multiple countries. One of their prominent holdings is the California-based REIT called Equinix.

11. Vanguard FTSE Social Index Fund Admiral

If you’re looking for affordable Vanguard SRI funds to invest in, the Vanguard FTSE Social Index Fund Admiral is one of the cheapest ESG mutual fund options. In 2020 alone, the fund acquired over $3 billion worth of assets under its management.

The mutual fund excludes companies involved in alcohol, weapons, and tobacco businesses, including only socially responsible investing options in your portfolio.

Although it uses a separate screening process from other actively managed ESG funds, it adequately assesses its holdings’ environmental and social impacts.

Some of its most popular holdings include Apple, Amazon, and Microsoft. The fund promises almost 1.2% in yearly dividends to its investors, which is expected to grow, attributing to the industry’s popularity. Check out these other top Vanguard ESG ETF funds.

12. Shelton Green Alpha Fund (NEXTX)

The NEXTX, founded by the Shelton group of companies, is an impressive mutual fund for investors targeting long-term growth. The fund includes companies that have thoroughly checked for their positive influences on the environment and a thorough assessment of their asset appreciation.

This way, its investors invest in sustainable environmental practices and earn profitable returns. Most of its holdings are from companies leading the sustainability game and showing high growth potential, namely IBM and Tesla.

Besides that, the fund thoroughly analyzes market fluctuations and global circumstances to mitigate investors’ risk. Although the fund is expensive, with around 1.4% of initial expense, it promises a staggering five-year growth rate of more than 16%.

13. Parnassus Core Equity Fund Investor

The Parnassus Core Equity Fund Investor manages over $23 billion of assets through its ESG mutual fund. The fund only lets in companies with similar visions of environmental and socially responsible practices.

Furthermore, the fund works to exclude companies connected with unethical businesses to reduce loss due to controversy and irrelevance. Moreover, the fund makes it a point to put management teams of their holdings under the test to gauge their productivity and growth rate in the future.

Most importantly, the Parnassus fund performed 2.5% better than S&P 500 funds during the past three years.

14. Pax Ellevate Global Women’s Leadership Fund

If you’re a feminist who wants your sentiments reflected in your investment portfolio, this mutual fund by Pax Ellevate is a profitable option. The fund manages over $700 million worth of assets, clearly showing the potential of gender-centered, socially responsible investments.

The mutual fund promises a yearly dividend of 1.1% with a 0.80% upfront expense. It covers more than 400 companies promoting gender diversity in their workplaces. Moreover, the fund outperformed 93% of its global competitors in equity during the last five years.

The fund uses specific criteria through its Gender Analytics Team to evaluate companies for adequate representation of women and pay rate equality. Some of its top holdings include Accenture and Microsoft.

15. Calvert Emerging Markets Equity Fund I (CVMIX)

For investors interested in achieving long-term appreciation of assets, this ESG mutual fund launched by Calvert Emerging Markets is an ideal option. The fund includes companies from emerging markets that use sustainable business practices across multiple sectors.

Since its launch in 2012, the fund has performed impressively in the market, with over 7% average returns in the last five years. For an inexpensive initial price range of 0.99%, it is a profitable option for beginners looking to invest in ESG funds.

This emerging markets fund is a decent way to gain international exposure and diversify your portfolio.

ESG Bond Funds

Bond funds are investment assets that let investors benefit from market volatility. They have lower minimum investment amounts, so you can buy them at lower prices than other investment funds.

You can also purchase multiple bonds to diversify your portfolio while earning a steady interest rate. You can buy these bonds directly from fund managers at the market rate or through brokerage accounts.

These bonds are highly liquid as they can be sold back to their fund managers, making them more attractive to investors. If you’re interested, here’s a list of ESG bond funds to invest in today.

16. Boston Trust Walden Balanced Fund

The Boston Trust Walden Balanced Fund has a fixed-income portfolio with multiple bonds. Namely, corporate bonds, municipal bonds, government-related bonds, and cash equivalents.

Investors can purchase bonds at a 1% expense and earn about 0.8% yearly dividends. Furthermore, the fund acquires companies of all sizes but focuses on large-cap companies like Apple, Google, and Microsoft.

This bond fund is known to screen its holdings thoroughly for ESG compliance and ESG factors. It avoids companies with poor corporate governance and those with connections to alcohol production, tobacco, weapons, and coal mining.

17. TIAA-CREF Core Impact Bond Fund

The TIAA-CREF ESG bond fund launched by Nuveen is a fixed-income portfolio strategy for beginning investors in the sector. The fund acquires high-investment bonds from leading ESG-compliant companies with a reliable impact on environmental and social issues.

These bonds focus mainly on companies trying to contribute responsibly to issues of key ESG principles such as natural resources, promoting renewable energy, and providing affordable housing. This fund manages assets worth around $6 billion and provides its investors with an annual yield of 1%.

18. Sage ESG Intermediate Credit (GUDB)

This bond investment option, Sage ESG Intermediate Credit, works with various investment-grade bonds dominated by the US dollar.

The fund has proposed testing criteria for selecting its companies based on ESG compliance, including corporate governance initiatives.

Only the ESG companies that score the top third position in their peer group are included in their investors’ portfolios. Founded in 2017, the fund displayed a positive % market performance of 5% in November 2020.

Besides that, the expense ratio is only 0.35%, making it an affordable option for beginner investors seeking sustainable investing.

19. iShares ESG USD Corporate Bond Fund

The iShares ESG USD Corporate Bond Fund is a fixed-income option for investors looking for ESG bond funds. The fund focuses on acquiring corporate debt securities and selling them to its investors for profit.

However, following the Bloomberg Barclays MSCI US Corporate US Funds Index, the fund does not include companies that produce firearms, weapons, or fossil fuels. The managers exclude companies based on their revenue percentages generated from unethical means.

It was launched in 2017, so there’s no substantial performance record. However, it outperformed the category by 52 basis points in 2020.

See Related: History of Impact Investing

20. NuShares ESG U.S. Aggregate Bond ETF (NUBD)

The NuShares ESG US Aggregate Bond Fund acquires bonds from companies like Bloomberg and Barclays. The NUBD scrutinizes all its bonds using the ESG criteria.

Besides that, the bonds that pass the ESG screening are only included if they have a reasonable market value. Launched back in 2017, the bond fund performed almost 7% in November 2020. With an expense ratio of only 0.20%, this bond fund is affordable for new ESG investors.

Table of the Best ESG ETF Funds

This is a full list of ESG ETF funds with their ticker symbols and market capitalization.

Ticker	Fund Name	Issuer	AUM	Segment
ESGU	iShares ESG Aware MSCI USA ETF	Blackrock	$14.18B	Equity: U.S. - Total Market
ESGE	iShares ESG Aware MSCI EM ETF	Blackrock	$7.40B	Equity: Emerging Markets - Total Market
ICLN	iShares Global Clean Energy ETF	Blackrock	$6.97B	Equity:Global Renewable Energy
TAN	Invesco Solar ETF	Invesco	$5.08B	Equity:Global Renewable Energy
ESGD	iShares ESG Aware MSCI EAFE ETF	Blackrock	$4.49B	Equity: Developed Markets Ex-U.S. - Total Market
XSOE	WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	WisdomTree	$4.42B	Equity: Emerging Markets - Total Market
PBW	Invesco WilderHill Clean Energy ETF	Invesco	$3.64B	Equity:Global Renewable Energy
ESGV	Vanguard ESG U.S. Stock ETF	Vanguard	$3.56B	Equity: U.S. - Total Market
QCLN	First Trust NASDAQ Clean Edge Green Energy Index Fund	First Trust	$3.47B	Equity: U.S. Renewable Energy
USSG	Xtrackers MSCI U.S.A. ESG Leaders Equity ETF	Deutsche Bank	$3.32B	Equity: U.S. - Total Market
SUSL	iShares ESG MSCI USA Leaders ETF	Blackrock	$3.11B	Equity: U.S. - Total Market
DSI	iShares MSCI KLD 400 Social ETF	Blackrock	$2.78B	Equity: U.S. - Total Market
SUSA	iShares MSCI USA ESG Select ETF	Blackrock	$2.61B	Equity: U.S. - Total Market
VSGX	Vanguard ESG International Stock ETF	Vanguard	$1.83B	Equity: Global Ex-U.S. - Total Market
ACES	ALPS Clean Energy ETF	SS&C	$1.21B	Equity:Global Renewable Energy
EAGG	iShares ESG Aware U.S. Aggregate Bond ETF	Blackrock	$1.11B	Fixed Income: U.S. - Broad Market
CXSE	WisdomTree China ex-State-Owned Enterprises Fund	WisdomTree	$1.07B	Equity: China - Total Market
SPYX	SPDR S&P 500 Fossil Fuel Reserves Free ETF	State Street Global Advisors	$976.78M	Equity: U.S. - Large Cap
LDEM	iShares ESG MSCI EM Leaders ETF	Blackrock	$903.44M	Equity: Emerging Markets - Total Market
SUSC	iShares ESG Aware USD Corporate Bond ETF	Blackrock	$825.74M	Fixed Income: U.S. - Corporate
NULV	Nuveen ESG Large-Cap Value ETF	Nuveen Securities	$724.91M	Equity: U.S. - Large Cap Value
NUSC	Nuveen ESG Small-Cap ETF	Nuveen Securities	$707.60M	Equity: U.S. - Small Cap
CRBN	iShares MSCI ACWI Low Carbon Target ETF	Blackrock	$682.28M	Equity: Global - Total Market
ESML	iShares ESG Aware MSCI USA Small-Cap ETF	Blackrock	$641.54M	Equity: U.S. - Small Cap
SUSB	iShares ESG Aware 1-5 Year USD Corporate Bond ETF	Blackrock	$641.53M	Fixed Income: U.S. - Corporate
NULG	Nuveen ESG Large-Cap Growth ETF	Nuveen Securities	$607.42M	Equity: U.S. - Large Cap Growth
PZD	Invesco Cleantech ETF	Invesco	$539.49M	Equity: Global Environment
FAN	First Trust Global Wind Energy ETF	First Trust	$493.41M	Equity:Global Renewable Energy
PBD	Invesco Global Clean Energy ETF	Invesco	$491.13M	Equity:Global Renewable Energy
CATH	Global X S&P 500 Catholic Values ETF	Mirae Asset	$485.28M	Equity: U.S. - Large Cap
CNRG	SPDR S&P Kensho Clean Power ETF	State Street Global Advisors	$465.03M	Equity:Global Renewable Energy
SNPE	Xtrackers S&P 500 ESG ETF	Deutsche Bank	$450.03M	Equity: U.S. - Large Cap
KRMA	Global X Conscious Companies ETF	Mirae Asset	$426.81M	Equity: U.S. - Total Market
SDG	iShares MSCI Global Impact ETF	Blackrock	$403.82M	Equity: Global - Total Market
IQSU	IQ Candriam ESG U.S. Equity ETF	New York Life	$370.10M	Equity: U.S. - Total Market
SMOG	VanEck Vectors Low Carbon Energy ETF	VanEck	$350.96M	Equity:Global Renewable Energy
NUMG	Nuveen ESG Mid-Cap Growth ETF	Nuveen Securities	$275.69M	Equity: U.S. - Mid Cap Growth
NUBD	Nuveen ESG U.S. Aggregate Bond ETF	Nuveen Securities	$214.59M	Fixed Income: U.S. - Broad Market
CTEC	Global X CleanTech ETF	Mirae Asset	$213.01M	Equity: Global Environment
SHE	SPDR SSGA Gender Diversity Index ETF	State Street Global Advisors	$202.43M	Equity: U.S. - Large Cap
JUST	Goldman Sachs JUST U.S. Large Cap Equity ETF	Goldman Sachs	$200.36M	Equity: U.S. - Large Cap
KGRN	KraneShares MSCI China Environment Index ETF	CICC	$192.63M	Equity: China - Total Market
BGRN	iShares Global Green Bond ETF	Blackrock	$191.34M	Fixed Income: Global - Broad Market
EUSB	iShares ESG Advanced Total USD Bond Market ETF	Blackrock	$185.74M	Fixed Income: U.S. - Broad Market
EFAX	SPDR MSCI EAFE Fossil Fuel Reserves Free ETF	State Street Global Advisors	$184.81M	Equity: Developed Markets Ex-U.S. - Total Market
ESG	FlexShares STOXX U.S. ESG Impact Index Fund	Northern Trust	$179.49M	Equity: U.S. - Total Market
BIBL	Inspire 100 ETF	Inspire	$175.22M	Equity: U.S. - Large Cap
NUMV	Nuveen ESG Mid-Cap Value ETF	Nuveen Securities	$172.07M	Equity: U.S. - Mid Cap Value
ESGG	FlexShares STOXX Global ESG Impact Index Fund	Northern Trust	$162.36M	Equity: Developed Markets - Total Market
IBD	Inspire Corporate Bond Impact ETF	Inspire	$158.76M	Fixed Income: U.S. - Corporate

Frequently Asked Questions (FAQs)

Now that you’ve reviewed my list of the best ESG funds available in different categories, it’s time to answer some FAQs.

What is an ESG Fund?

An ESG fund is an investment option that lets investors use their money to fund companies supporting ethical and responsible practices. All companies in ESG fund portfolios are carefully vetted using specific ESG criteria.

For additional knowledge. Do you know the difference between ESG, SRI, and Impact Investing?

How Many ESG Funds Are There?

The SIF Foundation identified more than 800 ESG funds in the US in 2020. Together, these funds have asset values of around $3 trillion.

What Does ESG Mean?

ESG is a criterion for evaluating companies based on environmental, social, and governance management.

Are ESG Funds Worth It?

The investment market is witnessing exponential growth in ESG funds’ performances. That’s why ESG funds are worth it in terms of responsible and ethical implications and provide profitable returns on investment.

What Are the Best ESG Funds?

The best ESG funds are the ones that help investors contribute adequately towards sustainable and responsible principles.

However, this doesn’t mean investors should ignore the financial gains they receive from their investments. Some of the best ESG funds that provide high returns by supporting sustainable businesses include Vanguard SRIs and ESG funds from the Nuveen umbrella.

See Related: What is ESG Shareholder Activism?

Final Words

That concludes my list of the top ESG funds and their salient features. Remember, the funds with the highest or lowest price tags don’t have to be your best options.

Instead, in the case of ESG funds, it all depends on your personal preferences. Assess each fund based on the mission you have in mind so that you can make the difference you want with your investment.

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The Impact Investor

Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.

Hailing from a lineage of industrious Midwestern entrepreneurs and creatives, his business instincts are deeply ingrained. This background fuels his entrepreneurial spirit and underpins his commitment to responsible investment. As the Founder and Owner of The Impact Investor, Kyle fervently advocates for increased awareness of ethically invested funds, empowering individuals to make judicious investment decisions.

Striving to marry financial prudence with positive societal impact, Kyle imparts practical strategies for saving and investing, underlined by a robust ethos of conscientious capitalism. His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment.

When not immersed in finance, he’s continually captivated by the cultural richness of new cities, relishing the opportunity to learn from diverse societies. This passion for travel is eloquently documented on his site, ViaTravelers.com, where you can delve into his unique experiences via his author profile. Read more about Kyle’s portfolio of projects.