Best ESG ETFs for 2026
ESG ETFs integrate environmental, social, and governance criteria into their investment process, selecting companies that meet specific sustainability and ethical standards. For investors who want their portfolio to reflect their values — whether related to climate change, labor practices, board diversity, or corporate ethics — ESG ETFs provide a diversified, low-cost way to invest responsibly without sacrificing the convenience and diversification benefits of index-based investing.
ESGU from iShares is the largest ESG ETF in the US, tracking the MSCI USA Extended ESG Focus Index which screens out controversial companies while maintaining broad market-like diversification and sector weights. SUSA, also from iShares, takes a more selective approach by tracking the MSCI USA ESG Leaders Index, which includes only companies with the highest ESG ratings in each sector. ESGD from iShares provides international ESG exposure by applying similar sustainability screens to developed market stocks outside the US.
The ESG investing landscape has matured significantly, with better data, more standardized ratings, and stronger evidence that companies with good ESG practices often demonstrate better risk management and long-term financial performance. However, ESG ratings are not standardized across providers, and different ESG ETFs can have very different methodologies — some merely exclude controversial industries, while others actively select best-in-class ESG performers. Understanding these differences is key to finding an ESG ETF that genuinely aligns with your values.
How We Rank
ETFs are ranked by assets under management (AUM). Only ETFs with $50M+ in assets are included. Data is updated daily.
| # | Symbol | Fund Name | AUM |
|---|---|---|---|
| 1 | VCIT | Vanguard Intermediate-Term Corporate Bond ETF | $65.60B |
| 2 | VGIT | Vanguard Intermediate-Term Treasury ETF | $47.30B |
| 3 | VMBS | Vanguard Mortgage-Backed Securities ETF | $16.60B |
| 4 | ESGU | iShares ESG Aware MSCI USA ETF | $15.26B |
| 5 | VGLT | Vanguard Long-Term Treasury ETF | $14.40B |
| 6 | MOAT | VanEck Morningstar Wide Moat ETF | $11.99B |
| 7 | ESGV | Vanguard ESG U.S. Stock ETF | $11.90B |
| 8 | ESGD | iShares ESG Aware MSCI EAFE ETF | $10.75B |
| 9 | VCLT | Vanguard Long-Term Corporate Bond ETF | $8.50B |
| 10 | GRID | First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund | $7.87B |
| 11 | ESGE | iShares ESG Aware MSCI EM ETF | $6.25B |
| 12 | VSGX | Vanguard ESG International Stock ETF | $6.00B |
| 13 | FBCG | FIDELITY BLUE CHIP GROWTH ETF | $5.38B |
| 14 | DSI | iShares ESG MSCI KLD 400 ETF | $4.86B |
| 15 | EAGG | iShares ESG Aware U.S. Aggregate Bond ETF | $4.60B |
| 16 | SUSA | iShares ESG Optimized MSCI USA ETF | $3.54B |
| 17 | MEIEF | iShares IV Public Limited Company - iShares MSCI EM IMI ESG Screened UCITS ETF | $3.26B |
| 18 | USCA | Xtrackers MSCI USA Climate Action Equity ETF | $2.77B |
| 19 | SPYX | State Street SPDR S&P 500 Fossil Fuel Reserves Free ETF | $2.44B |
| 20 | NULG | Nuveen ESG Large-Cap Growth | $2.39B |
| 21 | PABU | iShares Paris-Aligned Climate Optimized MSCI USA ETF | $2.24B |
| 22 | ESML | iShares ESG Aware MSCI USA Small-Cap ETF | $2.19B |
| 23 | USCL | iShares Climate Conscious & Transition MSCI USA ETF | $2.15B |
| 24 | ICLN | iShares Global Clean Energy ETF | $2.14B |
| 25 | NULV | Nuveen ESG Large-Cap Value | $1.94B |
What to Look For
Examine the ESG screening methodology carefully. Some funds use negative screening (excluding industries like tobacco, weapons, or fossil fuels), while others use positive screening (selecting companies with the best ESG scores). The strictness of screening affects both the fund's ethical alignment and its performance deviation from the broad market.
Compare the fund's holdings and sector weights to a standard market-cap index. Lighter ESG screens may produce a portfolio that is very similar to the S&P 500, while stricter screens create more differentiation. Expense ratios for ESG ETFs have declined significantly and now range from 0.10% to 0.25% for major funds. Also consider whether you want US-only or global ESG exposure.
Which ESG ETFs Is Best for You?
ESGU provides the broadest ESG-screened US equity exposure, with a portfolio that closely resembles the S&P 500 but excludes companies involved in controversial weapons, tobacco, and other objectionable activities. Its light-touch approach means minimal performance deviation from the broad market, making it an easy swap for investors who want ESG alignment without drastically changing their portfolio characteristics.
SUSA applies more rigorous ESG screening by selecting only companies with the highest ESG ratings within each sector. This best-in-class approach creates more meaningful differentiation from the broad market while maintaining sector diversification. SUSA is the better choice for investors who want their ESG ETF to genuinely reflect superior corporate practices.
ESGD extends ESG investing globally by applying sustainability screens to developed international markets. It provides exposure to ESG leaders in Europe, Japan, and other developed regions where ESG standards and disclosure are often more advanced than in the US. ESGD is an essential complement for investors who want global portfolio ESG alignment.