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ETFs with an ESG focus

1. iShares ESG Aware MSCI USA ETF

The iShare ESG Aware MSCI USA ETF follows the S&P 500 index and has a strong MSCI ESG quality score of 8.91 and a AAA rating. It holds 320 investments, with Apple, Microsoft, Amazon, and Tesla being the largest. The fund avoids investing in areas such as nuclear weapons, controversial weapons, tobacco, civilian firearms, oil sands, thermal coal, and UN Global Compact violators.

If you’re looking for investments that consider environmental, social, and governance (ESG) factors, the iShare ESG Aware ETF is a good option. 

2.  Vanguard ESG U.S. Stock ETF

The Vanguard ESG ETF invests in around 1,500 U.S. stocks. It’s a type of investment that uses exclusionary principles, which means it avoids investing in companies that make money from things such as controversial weapons, fossil fuels, tobacco, and more. It also looks for companies that have diverse workplaces and boards, and that follow labor rights, human rights, anti-corruption, and environmental standards. The ETF’s largest holdings are in Apple, Microsoft, Alphabet, Amazon, and Tesla. 

If you’re interested in investing in U.S. companies that have a positive social impact, the Vanguard ESG ETF could be a good choice.

3. iShares Global Clean Energy ETF

The iShares Global Clean Energy ETF invests in companies that focus on clean energy production, equipment, and technologies. It tracks the S&P Global Clean Energy Index and holds 83 investments, with significant positions in wind and solar energy. The ETF’s largest holdings are in Vestas Wind Systems, Enphase Energy, Consolidated Edison, and Orsted. It could be a  good option if you want to invest in sustainable energy for the long term. 

4. iShares ESG Aware MSCI EAFE ETF

The iShares ESG Aware MSCI EAFE  ETF has 452 investments and focuses on companies that follow environmental, social, and governance (ESG) principles. It has a high MSCI score of 9.8 and a AAA rating. The fund is distributed across business sectors, with significant investments in financials, industrials, and healthcare. Its largest holdings are in Nestle, ASML Holding, Roche Holding, and AstraZeneca.

The fund avoids investing in companies that make money from nuclear weapons, controversial weapons, tobacco, civilian firearms, oil sands, thermal coal, and UN Global Compact violators. If you’re interested in investing in companies that follow ESG principles, the iShares ESG Aware  MSCI EAFE ETF could be a good choice.

5. Vanguard ESG International Stock ETF

The Vanguard ESG International ETF invests in 3,000 to 4,000 stocks and follows ESG exclusionary principles. The fund avoids investing in companies that make money from things like controversial weapons, fossil fuels, tobacco, and more. It also looks for companies that have diverse workplaces and boards, and that follow U.N. Global Compact principles. The ETF’s largest holdings are in Taiwan Semiconductor Manufacturing, Nestle, Samsung Electronics, Toyota, Alibaba Group, and AstraZeneca.

If you’re looking for an investment that considers environmental, social, and governance (ESG) factors, the Vanguard ESG International ETF could be a good option.

Information correct at time of publishing. It is important to conduct thorough research and analysis using a combination of fundamental and technical analysis techniques to make informed trading decisions.

Additionally, consider your risk tolerance, investment objectives, and time horizon when assessing company performance for trading. This content is not meant as financial advice.
Picture of Tinus Rautenbach

Tinus Rautenbach

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A South-African independent investment platform backed by a major bank.

A South-African investment platform backed by a major bank.