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.
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.
See Related: AvalonBay Communities, Inc. ESG Profile (AVB): Is It Sustainable?
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.
See Related: Robert Half International Inc. ESG Profile (RHI): Is It Sustainable?
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.
See Related: Motorola Solutions, Inc. ESG Profile (MSI): Is It Sustainable?
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.
See Related: Reinsurance Group of America, Incorporated ESG Profile (RGA)
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.
See Related: Waters Corporation ESG Profile (WAT): Is It Sustainable?
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.
See Related: Extra Space Storage Inc. ESG Profile (EXR): Is It Sustainable?
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.
See Related: Ethical Dividend Stocks to Invest in Today
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.
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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.
See Related: Universal Insurance Holdings, Inc. ESG Profile (UVE): Is It Sustainable?
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.
See Related: Universal Technical Institute, Inc. ESG Profile (UTI): Is It Sustainable?
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.
See Related: UpHealth, Inc. ESG Profile (UPH): Is It Sustainable?
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.
See Related: Urban Edge Properties ESG Profile (UE): Is It Sustainable?
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.
See Related: Urstadt Biddle Properties Inc. ESG Profile (UBA): Is It Sustainable?
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.
See Related: US Foods Holding Corp. ESG Profile (USFD): Is It Sustainable?
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.
See Related: Snap Inc. ESG Profile (SNAP): Is It Sustainable?
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.
See Related: Synchrony Financial ESG Profile (SYF): Is It Sustainable?
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.
See Related: The PNC Financial Services Group, Inc. ESG Profile (PNC): Is It Sustainable?
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%.
See Related: W. R. Grace & Co. ESG Profile (GRA): Is It Sustainable?
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.
See Related: Steelcase Inc. ESG Profile (SCS): Is It Sustainable?
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.
See Related: Service Corporation International ESG Profile (SCI): Is It Sustainable?
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.
See Related: Xylem Inc. ESG Profile (XYL): Is It Sustainable?
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.
See Related: The Mosaic Company ESG Profile (MOS): Is It Sustainable?
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.
See Related: Affiliated Managers Group, Inc. ESG Profile (AMG): Is It Sustainable?
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%.
See Related: American Express Company ESG Profile (AXP): Is It Sustainable?
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.
See Related: Booz Allen Hamilton Holding Corporation ESG Profile (BAH): Is It Sustainable?
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.
See Related: Capri Holdings Limited ESG Profile (CPRI): Is It Sustainable?
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.
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