Investing in Environmental, Social, and Governance (ESG) funds has gained significant popularity among investors who seek financial returns while aligning with ethical and sustainable values. ESG funds focus on companies that prioritize sustainability, corporate responsibility, and ethical governance.
This article provides a detailed list of some of the best ESG funds available, categorized under different investment strategies.
Best Overall ESG Funds
If you’re looking for well-balanced ESG funds that focus on sustainability, ethical governance, and strong financial returns, these options are among the best:
- Vanguard FTSE Social Index Fund (VFTAX)
- Parnassus Core Equity Fund (PRBLX)
- iShares ESG Aware MSCI USA ETF (ESGU)
- TIAA-CREF Social Choice Equity Fund (TICRX)
- Calvert Equity Fund (CEYIX)
- Nuveen ESG Large-Cap Growth ETF (NULG)
- Fidelity U.S. Sustainability Index Fund (FITLX)
- iShares Global Clean Energy ETF (ICLN)
- Domini Impact Equity Fund (DSEFX)
- Pax Sustainable Allocation Fund (PAXWX)
ESG Index Funds
ESG index funds track indices that focus on companies meeting high ESG standards. These funds provide broad exposure while maintaining sustainable investment principles.
- Vanguard ESG U.S. Stock ETF (ESGV)
- SPDR S&P 500 ESG ETF (EFIV)
- iShares ESG Advanced MSCI USA ETF (USXF)
- Nuveen ESG Large-Cap Value ETF (NULV)
- Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)
- iShares ESG Screened S&P 500 ETF (XVV)
- Goldman Sachs JUST U.S. Large Cap Equity ETF (JUST)
- Fidelity Sustainability U.S. Equity ETF (FSST)
- SPDR MSCI ACWI Low Carbon Target ETF (LOWC)
- Schwab ESG Large-Cap ETF (SNPE)
Mutual Funds
ESG mutual funds allow investors to pool their money into professionally managed portfolios with a strong emphasis on sustainability.
- Parnassus Mid Cap Fund (PARMX)
- Calvert International Equity Fund (CWVIX)
- TIAA-CREF Social Choice Bond Fund (TSBIX)
- Green Century Balanced Fund (GCBLX)
- Praxis Impact Bond Fund (MIIIX)
- Pax Global Environmental Markets Fund (PGRNX)
- Shelton Green Alpha Fund (NEXTX)
- Calvert Small Cap Fund (CSVIX)
- Trillium ESG Global Equity Fund (PORTX)
- Domini International Opportunities Fund (DOMOX)
Best ESG ETFs
Exchange-traded funds (ETFs) are a great way to invest in ESG principles with diversified exposure to sustainable companies.
- iShares MSCI KLD 400 Social ETF (DSI)
- Invesco MSCI Sustainable Future ETF (ERTH)
- SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)
- Nuveen ESG Mid-Cap Growth ETF (NUMG)
- iShares ESG MSCI EM Leaders ETF (LDEM)
- iShares Global Impact ETF (SDG)
- VanEck Low Carbon Energy ETF (SMOG)
- SPDR S&P ESG International ETF (ESIX)
- First Trust Nasdaq Clean Edge Green Energy ETF (QCLN)
- iShares ESG Advanced Total International Stock ETF (EAOR)
ESG Funds for Sustainable Energy
Investing in renewable energy and clean technology is crucial for combating climate change. These ESG funds focus on sustainable energy sources.
- Invesco Solar ETF (TAN)
- First Trust Global Wind Energy ETF (FAN)
- Global X CleanTech ETF (CTEC)
- iShares Global Clean Energy ETF (ICLN)
- VanEck Low Carbon Energy ETF (SMOG)
- SPDR S&P Kensho Clean Power ETF (CNRG)
- ALPS Clean Energy ETF (ACES)
- KraneShares Global Carbon ETF (KRBN)
- Fidelity Clean Energy ETF (FRNW)
- BlackRock Global Renewable Power Fund III
Funds for Socially Responsible Investing
Some ESG funds place a strong emphasis on ethical business practices, human rights, and social impact.
- Domini Impact Equity Fund (DSEFX)
- Parnassus Core Equity Fund (PRBLX)
- Calvert Equity Fund (CEYIX)
- Pax Global Opportunities Fund (PGOIX)
- Praxis Growth Index Fund (MGPIX)
- TIAA-CREF Social Choice International Equity Fund (TSINX)
- Trillium ESG Global Equity Fund (PORTX)
- Green Century Equity Fund (GCEQX)
- Boston Trust Walden Midcap Fund (BWMIX)
- Shelton Green Alpha Fund (NEXTX)
Best ESG Funds for Fixed Income Investors
If you prefer bonds over stocks but still want to invest in ESG principles, these funds are excellent choices.
- TIAA-CREF Social Choice Bond Fund (TSBIX)
- Pax Core Bond Fund (PAXBX)
- Calvert Green Bond Fund (CGAFX)
- Domini Impact Bond Fund (DSBFX)
- iShares Global Green Bond ETF (BGRN)
- Nuveen ESG High Yield Corporate Bond ETF (NUHY)
- Parnassus Fixed Income Fund (PFPLX)
- Praxis Impact Bond Fund (MIIIX)
- Vanguard ESG U.S. Corporate Bond ETF (VCEB)
- SPDR Bloomberg SASB Corporate Bond ESG ETF (RBND)
International ESG Funds
For investors seeking global exposure while maintaining ESG principles, these funds focus on international markets.
- iShares ESG Aware MSCI EAFE ETF (ESGD)
- Calvert International Responsible Index Fund (CDHIX)
- Nuveen ESG International Developed Markets Equity ETF (NUDM)
- iShares ESG MSCI EM Leaders ETF (LDEM)
- Xtrackers MSCI Emerging Markets ESG Leaders ETF (EMSG)
- Pax MSCI International ESG Leaders ETF (PXINX)
- Domini International Opportunities Fund (DOMOX)
- VanEck Sustainable Future of Food ETF (EATV)
- TIAA-CREF Social Choice International Equity Fund (TSINX)
- Schwab International ESG Equity ETF (SWEF)
ESG Funds for Growth Investors
Growth investors seeking high returns with an ESG focus should consider these funds, which prioritize companies with long-term expansion potential.
- Vanguard ESG Growth ETF (ESGY)
- Calvert Growth Fund (CGRWX)
- Nuveen ESG Large-Cap Growth ETF (NULG)
- iShares ESG Advanced MSCI USA ETF (USXF)
- SPDR S&P 500 ESG ETF (EFIV)
- Fidelity Sustainability U.S. Equity ETF (FSST)
- Parnassus Growth Fund (PARGX)
- Trillium ESG Global Equity Fund (PORTX)
- Shelton Sustainable Equity Fund (NEXTX)
- TIAA-CREF Growth & Income ESG Fund (TGPIX)
Funds for Value Investors
Value investors can find opportunities in ESG funds that focus on undervalued, responsible companies.
- Nuveen ESG Large-Cap Value ETF (NULV)
- Parnassus Value Equity Fund (PRVEX)
- TIAA-CREF Social Choice Value Fund (TSVCX)
- Calvert Value Fund (CVLIX)
- iShares ESG Aware MSCI USA ETF (ESGU)
- Boston Trust Walden Equity Fund (BWEIX)
- Fidelity Sustainable Equity ETF (FSET)
- Domini Sustainable Solutions Fund (DSSFX)
- SPDR MSCI ESG Select ETF (ESGS)
- Pax ESG Beta Dividend Fund (PAXDX)
ESG Funds for Dividend Investors
For those who seek steady income through dividends while maintaining an ESG focus, these funds prioritize companies with strong dividend yields and sustainable practices.
- iShares ESG MSCI USA Leaders ETF (SUSL)
- Nuveen ESG Dividend ETF (NUDV)
- Parnassus Fixed Income Fund (PFPLX)
- Vanguard ESG U.S. Stock ETF (ESGV)
- SPDR S&P 500 ESG ETF (EFIV)
- Fidelity Sustainable U.S. Equity ETF (FSET)
- Schwab ESG Dividend Equity ETF (SCHD-ESG)
- BlackRock Sustainable Advantage Large Cap Core Fund (BIRAX)
- Pax Sustainable Allocation Fund (PAXWX)
- TIAA-CREF Social Choice Equity Fund (TICRX)
Funds for Small-Cap Investors
Investors looking for ESG-focused opportunities in small-cap companies may consider these funds, which target sustainable businesses with high growth potential.
- Calvert Small Cap Fund (CSVIX)
- Parnassus Mid Cap Growth Fund (PARNX)
- Shelton Green Alpha Fund (NEXTX)
- iShares ESG Aware MSCI USA Small-Cap ETF (ESML)
- Nuveen ESG Small-Cap ETF (NUSC)
- Pax Small Cap ESG Fund (PXSIX)
- Domini Sustainable Solutions Fund (DSSFX)
- Trillium Small/Mid Cap Fund (TSMDX)
- Boston Trust Walden Small Cap Fund (BWSIX)
- SPDR S&P Small Cap 600 ESG ETF (ESIXS)
ESG Funds for Thematic Investing
These funds focus on specific ESG themes such as gender equality, diversity, and water conservation, making them ideal for investors with targeted ethical priorities.
- SPDR SSGA Gender Diversity Index ETF (SHE)
- Impact Shares NAACP Minority Empowerment ETF (NACP)
- Calvert Gender Equity Fund (CGEXX)
- iShares Global Water ETF (IWTR)
- Pax Ellevate Global Women’s Leadership Fund (PXWIX)
- Domini Sustainable Solutions Fund (DSSFX)
- KraneShares MSCI China ESG Leaders ETF (KESG)
- VanEck Future of Food ETF (YUMY)
- Invesco MSCI Sustainable Future ETF (ERTH)
- Global X Conscious Companies ETF (KRMA)
Final Thoughts
ESG funds provide a way to align your investments with your values, focusing on sustainability, social responsibility, and ethical governance. Whether you’re a growth investor, value investor, or fixed-income enthusiast, there are numerous ESG funds to suit your financial goals. Always conduct thorough research and consult with a financial advisor before making investment decisions.
I am Mery Qam. I am an experienced and professional blogger at Connecting Tags. With a passion for discovering the latest and most creative names or tags. I provide insightful and engaging content. My expertise is in curating fresh and unique names, tags, and titles across various niches, making a trusted source for name ideas that are both trendy and timeless.
