Best ESG ETFs Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Our articles, interactive tools, and hypothetical examples contain information to help you conduct research but are not intended to serve as investment advice, and we cannot guarantee that this information is applicable or accurate to your personal circumstances. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Editorial disclosure
All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication. SHARE: Daniel Balakov/Getty Images May 10, 2022 Bankrate reporter Brian Baker covers investing and retirement. He has previous experience as an industry analyst at an investment firm. Baker is passionate about helping people make sense of complicated financial topics so that they can plan for their financial futures. Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money. Investing disclosure: The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Funds focused on have burst onto the investment scene in recent years, as institutions and individuals pay greater attention to the way their money is invested. Assets managed with ESG principles topped $35 trillion in 2020 and are expected to grow beyond $50 trillion by 2025, according to Bloomberg Intelligence. Here are some of the issues ESG funds focus on: Environmental – focuses on issues related to environmental protection and conservation. Energy use, use of natural resources, waste management and air emissions are factors that come into play when investing with an environmental mindset. Social – focuses on how companies treat employees, suppliers, customers and their communities. Factors that can impact investments include labor standards, safety, diversity of workforce, healthcare and more. Governance – focuses on a company’s leadership and rights of shareholders. Investors focused on governance issues might look at the composition of the board of directors and consider their independence and diversity. Other factors include executive pay, tax transparency and voting rights of shareholders. With the massive growth in ESG funds, it can be difficult to sift through the . Here are some of the best ESG ETFs to consider for your portfolio (Data as of May 4, 2022 unless otherwise noted). Best ESG funds
Vanguard ESG U S Stock ETF ESGV
The Vanguard ESG U.S. Stock ETF tries to match the performance of the FTSE U.S. All Cap Choice Index and screens for certain ESG criteria. Certain companies in the following industries are excluded from the fund: adult entertainment, alcohol, fossil fuels, gambling, nuclear power, tobacco and weapons. 3-year return (annualized): 15.4 percent Expense ratio: 0.09 percent Assets under management: $6.1 billion Top holdings: , , and iShares Global Clean Energy ETF ICLN
The iShares Global Clean Energy ETF seeks to track the performance of an index of global stocks from the clean energy sector. These companies produce energy from renewable sources such as solar and wind. The fund has around 100 holdings. 5-year return (annualized): 20.4 percent Expense ratio: 0.42 percent Assets under management: $5.3 billion Top holdings: Enphase Energy (ENPH), SolarEdge Technologies (SEDG), Consolidated Edison (ED) and Plug Power (PLUG) iShares ESG MSCI USA Leaders ETF SUSL
The iShares ESG MSCI USA Leaders ETF gives investors exposure to large- and mid-cap that score highly on ESG issues relative to their sector peers. The fund avoids holding companies with low ESG ratings or severe controversies. Average annual return since inception (May 2019): 19.6 percent Expense ratio: 0.10 percent Assets under management: $3.5 billion Top holdings: Microsoft (MSFT), Tesla (TSLA), Alphabet (GOOG) and Nvidia (NVDA) *Return data as of March 31, 2022 Nuveen ESG Large-Cap Value ETF NULV
The Nuveen ESG Large-Cap Value ETF uses a to invest in large-cap companies with value characteristics that also meet certain ESG criteria. The fund holds more than 100 positions. 5-year return (annualized): 10.4 percent Expense ratio: 0.25 percent Assets under management: $1.5 billion Top holdings: Procter & Gamble (PG), JPMorgan Chase (JPM), Coca-Cola (KO) and Home Depot (HD) SPDR S&P 500 Fossil Fuel Reserves Free ETF SPYX
The SPDR S&P 500 Fossil Fuel Reserves Free ETF gives investors focused on climate change exposure to the while eliminating companies that own fossil fuel reserves. It’s a great choice if you’re looking for fairly traditional investment exposure with a slight focus on climate change. 5-year return (annualized): 14.4 percent Expense ratio: 0.20 percent Assets under management: $1.3 billion Top holdings: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Tesla (TSLA) iShares MSCI Global Sustainable Development Goals ETF SDG
The iShares MSCI Global Sustainable Development Goals ETF seeks to track the performance of an made up of companies that derive the majority of their revenue from products and services that address at least one of the world’s major social and environmental challenges as defined by the United Nations. These goals include climate action, education, clean water and more. 5-year return (annualized): 11.9 percent Expense ratio: 0.49 percent Assets under management: $453.5 million Top holdings: Johnson Matthey (JMPLY), Umicore (UMICY), Novartis (NVS) and Kimberly-Clark (KMB) Bottom line
The popularity of ESG funds has soared in recent years, and these funds are a simple way to make an impact with your investments. ETFs give investors access to at a fairly low cost, making them an ideal investment for many portfolios. Be sure to do your research before investing, however. Some funds can charge high expense ratios, and as ESG has taken off as an investment approach, certain funds include ESG in their name, but may not have strict guidelines for following the strategy. Be sure the ETF’s holdings are consistent with the approach you’re looking for. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. SHARE: Bankrate reporter Brian Baker covers investing and retirement. He has previous experience as an industry analyst at an investment firm. Baker is passionate about helping people make sense of complicated financial topics so that they can plan for their financial futures. Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Related Articles