Environmental, Social, and Governance (ESG) investing is no longer a niche strategy; it’s a global movement. Ethical investors today want strong returns and positive impact. If you’re looking to align your portfolio with your values, these top ESG investment funds offer diversified exposure, solid track records, and responsible investing principles. Below are ten of the best ESG funds to consider in 2026.
1. Vanguard FTSE Social Index Fund (VFTAX)
Vanguard’s FTSE Social Index Fund is one of the most popular ESG mutual funds for long-term investors. It tracks the FTSE4Good US Select Index, screening out companies involved in tobacco, weapons, fossil fuels, and other controversial industries. With low expense ratios and broad U.S. large-cap exposure, this fund is ideal for investors who want ethical diversification at minimal cost. Vanguard’s reputation for passive investing and cost efficiency makes this ESG fund a reliable core portfolio holding for socially responsible investors focused on sustainable growth.
2. BlackRock iShares ESG Aware MSCI USA ETF (ESGU)
The iShares ESG Aware MSCI USA ETF offers broad exposure to U.S. companies with strong ESG ratings while maintaining risk and return characteristics similar to the overall market. Managed by BlackRock, the world’s largest asset manager, ESGU integrates sustainability data into its screening process without dramatically altering sector weightings. This makes it attractive for investors transitioning from traditional index funds to ESG strategies. With competitive fees and strong liquidity, ESGU is a convenient, exchange-traded option for ethical investors seeking diversified U.S. equity exposure.
3. Parnassus Investments Core Equity Fund (PRBLX)
Parnassus Core Equity Fund is widely recognized as a pioneer in responsible investing. This actively managed fund invests in high-quality U.S. companies with sustainable competitive advantages and strong workplace practices. It avoids fossil fuels, tobacco, and controversial sectors, focusing instead on businesses with long-term growth potential. Parnassus integrates ESG analysis deeply into its investment process rather than treating it as an afterthought. For investors who prefer active management and fundamental research alongside ethical screening, PRBLX remains a standout ESG mutual fund.
4. Fidelity Investments U.S. Sustainability Index Fund (FITLX)
Fidelity’s U.S. Sustainability Index Fund tracks companies with higher ESG ratings relative to their industry peers. Designed as a low-cost index option, FITLX removes companies with poor ESG records while preserving sector balance. This makes it appealing to investors seeking sustainable exposure without deviating significantly from traditional benchmarks. Fidelity’s robust research capabilities and strong operational platform enhance confidence in the fund’s management. For cost-conscious investors looking for a simple ESG entry point, FITLX offers a balanced blend of sustainability and market performance.
5. TIAA CREF Social Choice Equity Fund (TICRX)
TIAA’s CREF Social Choice Equity Fund emphasizes environmental stewardship, diversity, and corporate accountability. It applies strict exclusionary screens while actively engaging with companies on ESG issues. TICRX is particularly popular among retirement investors and nonprofit professionals who value sustainable finance. The fund combines active management with advocacy, aiming to influence corporate behavior positively. With decades of experience in socially responsible investing, TIAA provides ethical investors with a credible and mission-driven ESG option focused on long-term capital appreciation.
6. Calvert Research and Management Equity Fund (CSIEX)
Calvert has built its brand around responsible investing, and the Calvert Equity Fund reflects that commitment. The fund uses detailed ESG research, shareholder advocacy, and impact measurement in its strategy. It avoids controversial industries while investing in companies demonstrating leadership in sustainability and governance practices. Calvert also actively files shareholder resolutions to promote transparency and environmental responsibility. For investors who want their capital to influence corporate change while pursuing competitive returns, CSIEX stands out as a purpose-driven ESG mutual fund.
7. State Street Global Advisors SPDR S&P 500 ESG ETF (EFIV)
The SPDR S&P 500 ESG ETF provides exposure similar to the traditional S&P 500 but excludes companies that fail to meet ESG criteria. Managed by State Street Global Advisors, EFIV appeals to investors who want a familiar index structure with a sustainability overlay. The ETF maintains sector neutrality while filtering out controversial businesses, helping reduce tracking error. With competitive fees and broad diversification, EFIV is suitable for investors looking to integrate ESG principles into a core U.S. large-cap portfolio without sacrificing benchmark alignment.
8. Invesco ESG NASDAQ 100 ETF (QQMG)
Invesco’s ESG NASDAQ 100 ETF combines growth-focused investing with ESG screening. It tracks an ESG-screened version of the NASDAQ 100 Index, emphasizing innovative technology and growth companies that meet sustainability standards. Investors seeking exposure to large-cap tech leaders while avoiding companies with poor governance or environmental records may find QQMG appealing. The ETF structure provides liquidity and transparency, while ESG filters ensure alignment with ethical values. It’s a strong option for growth-oriented investors who care about sustainability.
9. Nuveen ESG Large-Cap Growth ETF (NULG)
Nuveen’s ESG Large-Cap Growth ETF focuses on companies demonstrating strong growth prospects and positive ESG characteristics. The fund integrates sustainability analysis directly into its quantitative screening process, ensuring companies meet defined ESG standards. NULG is particularly attractive to investors seeking capital appreciation through responsible investing. Backed by Nuveen’s long-standing experience in sustainable strategies, the ETF provides a disciplined, rules-based approach to ESG growth investing. It’s well-suited for ethical investors looking to balance innovation, performance, and sustainability.
10. Schwab Asset Management Schwab U.S. Large-Cap ESG ETF (SCHXG)
Schwab’s U.S. Large-Cap ESG ETF offers investors a cost-efficient way to integrate sustainability into a diversified portfolio. The fund screens companies based on ESG criteria while maintaining exposure to established U.S. blue-chip stocks. With Schwab’s focus on low-cost investing and accessibility, SCHXG is ideal for beginners exploring ethical investing. The ETF structure ensures transparency and tradability, while its ESG framework supports responsible capital allocation. For investors seeking affordability and sustainability in one package, this fund delivers strong value.
Choosing the Best ESG Investment Fund
The best ESG investment fund for you depends on your goals, whether you prefer active management, low-cost index funds, growth exposure, or retirement-focused strategies. As ESG investing continues to evolve, these funds represent some of the strongest options for ethical investors in 2026. By aligning your investments with your values, you can pursue competitive returns while supporting companies that prioritize sustainability, governance, and social responsibility.