What are the best ESG ETFs?

The iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU) is one of the largest ESG ETFs with an AUM of $12.82 billion as of September 13, 2023. The ETF observed an increase of 53.4% in the last five years. Another notable ESG ETF is the Vanguard ESG U.S. Stock ETF (ESGV), which will complete its five years since inception on September 18.

Are ESG funds individual stocks?

ESG funds are not individual stocks. They are a collection of multiple stocks grouped together. Buying a fund rather than an individual stock can decrease risk since a fund holds shares of many companies rather than just one. Exchange-traded funds (ETFs) are similar to index funds and other passively managed funds.

Why should you invest in an ESG ETF?

Investment in a socially and environmentally responsible fund automatically lessens your risk as an investor. From a company’s carbon footprint to its involvement in corporate scandals, this can drag funds and their worth to the ground. An ESG ETF can guarantee that this doesn’t happen.