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 Name | Inception Year | Net Assets | Expense Ratio | Return Since Inception |
|---|---|---|---|---|
| iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU) | 2016 | $16 billion | 0.15% | 17.86% annualized |
| SPDR S&P 500 ESG ETF (NYSEMKT:EFIV) | 2020 | $208 million | 0.10% | 24.20% |
| Fidelity U.S. Sustainability Index Fund (NASDAQMUTFUND:FITL.X) | 2017 | $1.1 billion | 0.11% | 17.83% annualized |
| Vanguard FTSE Social Index Fund Admiral Shares (NASDAQMUTFUND:VFTA.X) | 2019 | $12 billion | 0.14% | 24.04% annualized |
| Nuveen ESG Mid-Cap Growth ETF (NYSEMKT:NUMG) | 2016 | $292 million | 0.40% | 21.10% annualized |
| Calvert International Responsible Index Fund (NASDAQMUTFUND:CDHI.X) | 2015 | $450 million | 0.49% | 9.23% annualized |
| Pax Ellevate Global Women’s Leadership Fund (NASDAQMUTFUND:PXWEX) | 1993* | $822 million | 0.80% | 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 million | 0.12% | 3.36% annualized |