What is the most socially responsible ETF?
iShares ESG Aware MSCI USA ETF (ESGU)
Socially responsible ETFs invest in the equity of companies that consider financial returns as well as social good.
There are several types of ethical ETFs, including Environmental, Social, and Governance (ESG) ETFs, Socially Responsible Investing (SRI) ETFs, Impact Investing ETFs, and Faith-based ETFs. Each type focuses on different aspects of ethical investing, catering to various investor preferences and values.
The largest ESG ETF is the VanEck Semiconductor ETF SMH with $16.43B in assets. In the last trailing year, the best-performing ESG ETF was USD at 195.64%. The most recent ETF launched in the ESG space was the BNY Mellon Concentrated International ETF BKCI on 12/06/21.
Vanguard ESG U.S. Stock ETF (ESGV)
If you had to pick just one ESG exchange-traded fund, the Vanguard ESG U.S. Stock ETF would probably be it. With nearly 1,500 holdings, almost all from the U.S., this ETF hods an extremely well diversified portfolio that meet its environmental, social and governance principles.
An ethical ETF is an exchange traded fund that aims to invest in an ethical manner. For example, if the ETF is focused on investing in ethical stocks, it could aim to invest more in companies that are trying to be socially responsible - i.e. do more good (and less bad) for society.
The Global Socially Responsible Index Fund will invest primari- ly in the equity securities comprising the MSCI ACWI SRI index as established by MSCI. The benchmark for the Global Socially Responsible Index Fund is the MSCI ACWI SRI Index.
| Symbol Symbol | ETF Name ETF Name | Sustainable Impact Solutions (%) Sustainable Impact Solutions (%) |
|---|---|---|
| GBLD | Invesco MSCI Green Building ETF | 66.89% |
| WNDY | Global X Wind Energy ETF | 65.89% |
| KGRN | KraneShares MSCI China Clean Technology Index ETF | 63.21% |
| ICLN | iShares Global Clean Energy ETF | 60.43% |
1. Vanguard S&P 500 ETF (VOO 1.0%) Legendary investor Warren Buffett has said that the best investment the average American can make is a low-cost S&P 500 index fund like the Vanguard S&P 500 ETF.
Yes, we have a range of ESG funds that are designed to let you invest in line with your values and beliefs. ESG stands for 'environmental, social and governance' – these are the three broad categories that play a role in deciding what an ESG fund invests in. Learn more about ESG funds.
Which company has the greatest increase in ESG?
| Rank | Company | 3-yr EPS growth rate |
|---|---|---|
| 1 | Microsoft | 18 |
| 2 | Applied Materials | 29 |
| 3 | Woodward | -9 |
| 4 | Verisk Analytics | 2 |
| Rank | Company | ESG Score |
|---|---|---|
| 1 | ASML Holdings N.V. | 73.13 |
| 2 | Check Point Software Technologies | 72.64 |
| 3 | Hermes International SCA | 71.71 |
| 4 | Linde | 71.26 |
Fidelity offers hundreds of different ESG fund options. With so many funds to choose from, it can be pretty easy to become overwhelmed trying to decide which ESG funds might be right for you.
- Vanguard ESG U.S. Stock ETF (ESGV)
- iShares Global Clean Energy ETF (ICLN)
- iShares ESG MSCI USA Leaders ETF (SUSL)
- Nuveen ESG Large-Cap Value ETF (NULV)
- SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)
- iShares MSCI Global Sustainable Development Goals ETF (SDG)
- iShares ESG Aware MSCI USA ETF (ESGU)
| Ticker | Company | Performance (Year) |
|---|---|---|
| VGT | Vanguard Information Technology ETF | 30.75% |
| VFMO | Vanguard U.S. Momentum Factor ETF | 27.30% |
| VOOG | Vanguard S&P 500 Growth ETF | 26.64% |
| MGC | Vanguard Mega Cap 300 Index ETF | 25.51% |
We currently offer seven ESG products: four exclusionary index funds and three active funds.
ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.82B in assets. In the last trailing year, the best-performing Aggressive ETF was EAOA at 14.70%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
The Pros of Investing in Sustainable ETFs
This is because companies that prioritize ESG criteria are more likely to have a long-term perspective and are less likely to engage in risky or unethical practices that could harm their reputation and financial performance.
The S&P 500® Environmental & Socially Responsible Index is designed to measure the performance of securities from the S&P 500 that meet environmental and social sustainability criteria.
How to invest in social responsibility?
Socially responsible investments can be made into individual companies with good social value, or through a socially conscious mutual fund or exchange-traded fund (ETF).
The index is a capitalization weighted index that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings and excludes companies whose products have negative social or environmental impacts.
Mutual funds and ETFs may hold stocks, bonds, or commodities. Both can track indexes, but ETFs tend to be more cost-effective and liquid since they trade on exchanges like shares of stock. Mutual funds can offer active management and greater regulatory oversight at a higher cost and only allow transactions once daily.
| FUND(TICKER) | EXPENSE RATIO | 10-YEAR RETURN AS OF APRIL 1 |
|---|---|---|
| iShares Russell 1000 Growth ETF (IWF) | 0.19% | 15.78% |
| iShares S&P 500 Growth ETF (IVW) | 0.18% | 14.34% |
| Schwab U.S. Large-Cap Growth ETF (SCHG) | 0.04% | 15.95% |
| SPDR Portfolio S&P 500 Growth ETF (SPYG) | 0.04% | 14.45% |
| Rank | Fund | Value of £1,000 lump sum over one year (no charges applied) |
|---|---|---|
| 1 | GAM Disruptive Growth Fund | £1,422 |
| 2 | Polar Capital Global Tech | £1,347 |
| 3 | Janus Henderson Sustainable Future Technologies Fund G GBP Acc | £1,322 |
| 4 | Global Insight Fund I Acc | £1,322 |
