ESG Funds: Everything about it

ESG funds are equities and/or bond portfolios that have had environmental, social, and governance factors factored into the investment process.

Looking at the above definition, it simply means the equities and bonds contained in the fund have passed stringent tests over how sustainable the company or government is regarding its ESG criteria.

Best nine ESG funds to add to your portfolio

Fund NameInception YearNet AssetsExpense RatioReturn Since Inception
iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU)2016$16 billion0.15%17.86% annualized
SPDR S&P 500 ESG ETF (NYSEMKT:EFIV)2020$208 million0.10%24.20%
Fidelity U.S. Sustainability Index Fund (NASDAQMUTFUND:FITL.X)2017$1.1 billion0.11%17.83% annualized
Vanguard FTSE Social Index Fund Admiral Shares (NASDAQMUTFUND:VFTA.X)2019$12 billion0.14%24.04% annualized
Nuveen ESG Mid-Cap Growth ETF (NYSEMKT:NUMG)2016$292 million0.40%21.10% annualized
Calvert International Responsible Index Fund (NASDAQMUTFUND:CDHI.X)2015$450 million0.49%9.23% annualized
Pax Ellevate Global Women’s Leadership Fund  (NASDAQMUTFUND:PXWEX)1993*$822 million0.80%9.24% annualized*
iShares ESG Aware MSCI EM ETF (NASDAQ:ESGE)2016$7.2 billion 0.25%13.88% annualized
iShares ESG Aware 1-5 Year USD Corporate Bond ETF (NASDAQ:SUSB)  2017$758 million0.12%3.36% annualized