Top 15 Best Sustainable and ESG Investment Funds
Introduction
People worldwide realize the significance of environmental social governance (ESG) factors thus sustainable investment has experienced significant growth.
Sustainable investors need to evaluate both their typical financial indicators together with ESG elements when selecting their investment opportunities.
Multiple sustainable and ESG investment funds exist within the market with unique business approaches for specific purposes.
This article reviews the leading 15 sustainable and ESG investment funds by showcasing their investment philosophies and their performance results and associated fees.
_1. Vanguard FTSE Social Index Fund (VFTAX)_
The FTSE4Good US Select Index serves as the benchmark for Vanguard FTSE Social Index Fund because it contains companies that demonstrate ESG qualifications.
The fund maintains a low annual fee of 0.14% while exceeding S&P 500 performance for five years.
_2. iShares MSCI ACWI ESG ETF (ESGU)
This iShares MSCI ACWI ESG ETF follows the MSCI ACWI ESG Index that selects companies from worldwide markets which satisfy specific ESG requirements.
The fund controls expenses at a 0.15% ratio and has generated above-average returns than the MSCI ACWI Index during the last five years.
_3. BlackRock ESG Aware MSCI USA ETF (ESGU)_
The BlackRock ESG Aware MSCI USA ETF follows MSCI USA IMI Extended ESG Focus Index to select US companies that fulfill specified ESG standards.
The fund operates with an expense ratio that amounts to 0.15% while surpassing the S&P 500 performance throughout the last 5 years.
_4.State Street Global Advisors ESG ETF (ESGV)_
Companies that satisfy ESG criteria form the basis of the MSCI ESG Index which State Street Global Advisors ESG ETF tracks.
This index fund demonstrates an expense ratio of 0.15% and successfully outraised the MSCI ACWI Index performance during the past half-decade.
_5. Invesco ESG S&P 500 ETF (RPV)_
The S&P 500 ESG Index specifies ESG requirements for the components its tracks through the RPV ETF.
The fund surpasses S&P 500 benchmarks through its 0.15% expense ratio during the last five years.
_6. Nuveen ESG Dividend ETF (NUBD)_
The Nuveen ESG Dividend ETF follows the TIAA ESG USA Dividend Index which selects US companies fulfilling specified ESG requirements and maintaining dividend payment records.
The fund maintains a minimal expense ratio of 0.20% as it has delivered better returns than the S&P 500 during the past five years.
_7. Calvert US Large Cap Core ESG Fund (CALEX)_
The Calvert US Large Cap Core ESG Fund executes investments in US-based large-cap companies which satisfy its ESG criteria.
Because of its expense ratio at 0.22% the fund exceeded the S&P 500 in returns for the past 5 years.
_8. iShares MSCI EAFE ESG ETF (EFAES)_
Through the iShares MSCI EAFE ESG ETF the investor can access MSCI EAFE ESG Index-based companies that originate from developed countries outside US and Canada while fulfilling specific ESG requirements.
Investors benefit from a low expense ratio of 0.12% that allows the fund to achieve superior performance than MSCI EAFE Index in the last 5 years.
_9. TIAA-CREF Social Choice Equity Fund (TICRX)_
The TIAA-CREF Social Choice Equity Fund invests money only in American companies which achieve specific ESG target variables. Given its expense ratio of 0.23% this fund surpasses the S&P 500 over the last five years.
_10. Vanguard ESG US Stock ETF (VESG)_
The Vanguard ESG US Stock ETF follows the FTSE US All Cap ESG Index through which it selects US companies that fulfill particular ESG requirements.
Due to its low operational costs of 0.12% the fund has delivered better returns than the S&P 500 during the last 5 years.
_11. BlackRock ESG Aware International Equity ETF (ESIV)_
The BlackRock ESG Aware International Equity ETF uses its MSCI ESG International Equity Index to track investments in businesses that fulfill specific ESG standards from developed and emerging markets across the world except for U.S. markets.
The fund delivers a low expense ratio of 0.14% while surpassing the MSCI EAFE Index performance during the past five years.
12. State Street Global Advisors ESG International ETF
The State Street Global Advisors ESG International ETF utilizes the MSCI ESG International Equity Index by selecting developed and emerging market companies outside the US that fulfill organization-wide ESG requirements.
The low-cost structure of 0.14% enables this fund to surpass the MSCI EAFE Index performance during the past 5 years.
13. Invesco ESG International ETF (ESGU)
ESGI tracks the MSCI ESG International Equity Index that selects internationally based developed and emerging market companies fulfilling specific ESG requirements.
With an expense ratio at 0.15% this fund has achieved performance superior to both the MSCI EAFE Index and the benchmark index during the last 5-year period.
14. Nuveen ESG International ETF (NUIG)
Through tracking the TIAA ESG International Equity Index this Nuveen ESG International ETF selects its investments from companies in developed and emerging markets outside of the US which fulfill specific ESG requirements.
The fund maintains low yearly expenses at 0.20% and has generated better results than the MSCI EAFE Index during the past five years.
15. Calvert International ESG Fund (CAIFX
The Calvert International ESG Fund purchases stocks of outside US markets developed and emerging which satisfy specific ESG performance standards.
The fund demonstrates an expense ratio of 0.23% while surpassing the MSCI EAFE Index during its five-year performance period.
Conclusion
The adoption of sustainable and ESG investment strategies keeps increasing because of its clear merit.
Investors who examine ESG criteria with standard financial data report reduced exposure to risk as well as higher returns in their investments.
The list in this article contains the 15 most sustainable ESG investment funds that serve as options for investors aiming to include ESG criteria in their investment selection choices. Investors who want to sustainably invest their money have many different options between index funds and ETFs and actively managed funds.
Before making any investment you need to check all details carefully while examining your specific financial needs and willingness to face risks. Check that the fund's prospectus and wider documentation harmonizes with your investment aims and your core values through a review process.
Your financial objectives can be reached through responsible investments which additionally create positive changes for the world.
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