Investors interested in sustainable and responsible investing seek index funds that prioritize environmental, social, and governance (ESG) criteria. These funds aim to generate financial returns while supporting companies committed to positive social and environmental practices. This article highlights some of the best index funds aligned with responsible investing principles.
Top Sustainable Index Funds
Several index funds focus on sustainability, offering diversified portfolios that exclude companies with poor ESG records. These funds often track indices composed of companies with high ESG scores.
Popular Responsible Investing Index Funds
Responsible investing index funds incorporate ESG criteria into their selection process. They aim to balance financial performance with positive social impact.
Notable Funds to Consider
- Vanguard FTSE Social Index Fund – Tracks the FTSE4Good US Select Index, focusing on companies with strong ESG practices.
- iShares MSCI KLD 400 Social ETF – Invests in U.S. companies with high ESG ratings.
- SPDR S&P 500 ESG ETF – Offers exposure to S&P 500 companies with improved ESG profiles.
- Calvert U.S. Large Cap Core Responsible Index Fund – Focuses on large-cap U.S. companies demonstrating responsible practices.