Best ESG funds for investment in 2023

By Kenneth Bailey On Oct 22, 2023

ESG investing has become increasingly popular in recent years, and many ESG funds are now available for investors. Here are some of the best ESG funds for investors to consider in 2023:

1. Vanguard ESG U.S. Stock ETF (ESGV): This fund tracks the FTSE US All Cap Choice Index and screens for certain ESG criteria. The fund excludes companies in industries such as adult entertainment, alcohol, fossil fuels, gambling, nuclear power, tobacco, and weapons. The fund has a low expense ratio of 0.09%, and its top holdings include Apple, Microsoft, Amazon, and Tesla.

2. iShares ESG Aware MSCI USA ETF: This ETF follows the MSCI USA Extended ESG Focus Index, which avoids businesses that produce civilian firearms, controversial weapons, tobacco, and thermal coal. The fund has a low expense ratio of 0.15%, and top holdings include Apple, Microsoft, Amazon, META, TESLA and NVIDIA.

3. Pimco Enhanced Short Maturity Active ESG ETF (EMNT): This fund invests in short-term, investment-grade fixed-income securities and screens for ESG criteria. The fund has a low expense ratio of 0.35% and aims to provide current income while preserving capital.

4. Nuveen ESG Dividend Growth ETF (ESGD): This fund invests in U.S. companies with strong ESG practices and a history of paying dividends. The fund has a low expense ratio of 0.35%, and its top holdings include Microsoft, Apple, and Visa.

5. SPDR S&P 500 ESG ETF: This ETF tracks the S&P 500 ESG Index, which includes companies that meet specific ESG criteria. The fund has a low expense ratio of 0.10%, and its top holdings include Microsoft, Apple, and Amazon.

6. Fidelity U.S. Sustainability Index Fund: This fund tracks the Fidelity U.S. Sustainability Index, which includes companies that meet certain ESG criteria. The fund has a low expense ratio of 0.11%, and its top holdings include Microsoft, Apple, and Amazon.

7. iShares Global Clean Energy ETF (ICLN): This ETF invests in companies involved in producing clean energy. The fund has a low expense ratio of 0.46%, and top holdings include Enphase Energy, SolarEdge Technologies, and NextEra Energy.

8. Shelton Sustainable Equity Fund (SEQAX): This fund invests in U.S. companies that meet certain ESG criteria. The fund has a low expense ratio of 0.95%, and its top holdings include Microsoft, Apple, and Amazon.

ESG investing has become increasingly popular in recent years, and many ESG funds are now available for investors. The best ESG funds for investors to consider in 2023 include Vanguard ESG U.S. Stock ETF, iShares ESG Aware MSCI USA ETF, Pimco Enhanced Short Maturity Active ESG ETF, Nuveen ESG Dividend Growth ETF, SPDR S&P 500 ESG ETF, Fidelity U.S. Sustainability Index Fund, iShares Global Clean Energy ETF, and Shelton Sustainable Equity Fund. Investors should carefully consider their investment goals and risk tolerance before investing in any ESG fund.