Generally, ESG factors involve the impact that a company's operations and products have on the environment; the relationship a company has with customers, employees, suppliers, and communities they operate in; and a company's governance policies. The Global Sustainable Investment Alliance recently estimates that sustainable investments now account for more than a third of all global assets.
If you are interested in exploring ESG-focused ETFs, here are the 10 largest ESG ETFs by net assets, as of July 2021:
- iShares ESG Aware MSCI USA ETF (ESGU)
- iShares ESG Aware MSCI EM ETF (ESGE)
- iShares Global Clean Energy ETF (ICLN)
- iShares ESG Aware MSCI EAFE ETF (ESGD)
- Vanguard ESG US Stock ETF (ESGV)
- XTrackers MSCI USA ESG Leaders Equity ETF (USSG)
- iShares ESG MSCI USA Leaders ETF (SUSL)
- iShares MSCI USA ESG Select ETF (SUSA)
- iShares MSCI KLD 400 Social ETF (DSI)
- First Trust Nasdaq® Clean Edge® Green Energy Index Fund (QCLN)