Top 10 US ESG Investing Funds

The iShares MSCI KLD 400 Social ETF tracks the MSCI KLD 400 Social Index — one of the oldest US ESG equity benchmarks, launched in 1990. With $3B+ in AUM, DSI includes 400 US companies with positive ESG characteristics while excluding firearms, tobacco, and nuclear power.

TIAA-CREF Social Choice Equity Fund manages over $8 billion and targets US companies with strong ESG profiles while maintaining broad market diversification. Launched in 1999, it is a staple in university and non-profit retirement plans. TIAA, with $1.3 trillion in total AUM, is among the largest asset managers in the US.

Nuveen's ESG ETF suite, including NULG, targets large-cap growth companies with strong ESG scores while excluding companies involved in alcohol, tobacco, and weapons. Nuveen manages over $7B in ESG ETFs. Parent company TIAA's long-standing commitment to responsible investing underpins Nuveen's $1.1 trillion total AUM platform.

Dimensional Fund Advisors' US Sustainability Core 1 applies a systematic, factor-based approach to ESG investing, tilting toward companies with higher profitability and lower carbon intensity. With $12B+ in AUM, DFA integrates ESG data across its entire investment process rather than applying binary exclusion screens. Expense ratio: 0.18%.

Northern Trust manages over $15 billion in ESG equity strategies through customized ESG index solutions for institutional clients including pension funds, endowments, and sovereign wealth funds. Its FlexShares ESG & Climate ETFs offer retail access. Northern Trust has been a signatory to the UN Principles for Responsible Investment since 2008.

Fidelity's FITLX tracks the MSCI USA ESG Leaders Index with a low expense ratio of 0.11%—30% lower than the category average of 0.16%—and $5B+ in AUM, making it one of the most accessible mainstream ESG funds. Launched in 2017, it excludes controversial weapons, tobacco, and thermal coal companies, outperforming Vanguard FTSE Social Index Fund by including stricter fossil fuel screens. Fidelity now manages over $20B across its ESG fund lineup.

Putnam Sustainable Leaders is an actively managed ESG fund with over $2B in AUM that integrates ESG analysis with fundamental research to identify companies leading on sustainability metrics, yet its expense ratio of 0.90% is more than 8x higher than #1 FITLX's 0.11%. Founded in 1999, the fund has historically favored healthcare, technology, and consumer staples sectors, achieving a 5-year annualized return of 12.5%—exceeding the typical large-cap peer average of 10.8%. Putnam is owned by Franklin Templeton.