What criteria are used to rank the top 10 US ESG investing funds?

Top ESG funds are typically ranked based on their environmental, social, and governance scores, along with financial performance metrics such as expense ratios, returns, and assets under management.

How do ESG funds typically perform compared to traditional funds?

Many ESG funds have shown competitive or even superior long-term returns compared to traditional funds, though past performance does not guarantee future results and varies by fund.

What is the minimum investment required for most top ESG funds?

Minimum investments vary widely; some top ESG funds require as little as $0 (no minimum) for no-load mutual funds, while others may set a minimum of $1,000 to $2,500.

Are the top US ESG investing funds suitable for retirement accounts like IRAs?

Yes, most top ESG funds are available in IRA and 401(k) accounts through major brokerages, allowing investors to align their retirement savings with sustainable investing principles.

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Top 10 US ESG Investing Funds

US ESG fund assets exceeded $2.5 trillion by 2024. This list ranks 10 of the most influential responsible-investing funds in America — from pioneer mutual funds founded in the 1970s to low-cost ETFs tracking broad ESG indexes. Vote for the fund you trust most, then subscribe for weekly ESG insights.

Location: US2026140 viewsMar 25, 2026 Updated Sep 7, 2026

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#1
Parnassus Core Equity Fund
Parnassus Core Equity is the largest actively managed ESG mutual fund in the US, with approximately $23 billion in AUM as of 2024. Founded in 1992, it screens out tobacco, weapons, and fossil fuel companies while seeking strong fundamentals. The fund has consistently outperformed the S&P 500 on a risk-adjusted basis over 20+ years, delivering a 0.6% higher annualized return than the average large-cap ESG fund.
www.ft.com www.parnassus.com www.morningstar.com
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#2
Calvert Research and Management
Calvert, founded in 1976, is considered the pioneer of US ESG investing, launching its first responsible investment fund in 1982. Managing over $30 billion across equities, fixed income, and multi-asset strategies, Calvert screens for ESG risks and shareholder engagement.
www.bloomberg.com www.calvert.com www.morningstar.com
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#3
Vanguard ESG US Stock ETF (ESGV)
Vanguard's ESGV tracks a broad US equity ESG index with over $10 billion in AUM and an ultra-low expense ratio of 0.09%. Launched in 2018, it excludes fossil fuels, vice stocks, and companies failing MSCI ESG ratings. ESGV provides low-cost ESG exposure for mainstream investors seeking passive sustainable strategies, costing 64% less than the iShares MSCI KLD 400 Social ETF (DSI).
www.ft.com investor.vanguard.com www.morningstar.com
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#4
iShares MSCI KLD 400 Social ETF (DSI)
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.
www.bloomberg.com www.ishares.com www.morningstar.com
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#5
TIAA-CREF Social Choice Equity Fund
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.
www.ft.com www.tiaa.org www.morningstar.com
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#6
Nuveen ESG Large-Cap Growth ETF (NULG)
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.
www.nuveen.com www.morningstar.com www.bloomberg.com
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#7
DFA US Sustainability Core 1 Portfolio
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%.
www.ft.com us.dimensional.com www.morningstar.com
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#8
Northern Trust ESG Equity Index Fund
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.
www.bloomberg.com www.northerntrust.com www.morningstar.com
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#9
Fidelity US Sustainability Index Fund (FITLX)
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.
www.ft.com fundresearch.fidelity.com www.morningstar.com
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#10
Putnam Sustainable Leaders Fund
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.
www.bloomberg.com www.putnam.com www.morningstar.com
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Frequently Asked Questions About ESG Investing in the US

What is the difference between an ESG mutual fund and an ESG ETF? ESG mutual funds are actively managed or track an index, often with higher fees, while ESG ETFs are typically passively managed index funds with lower expense ratios. Both aim for positive environmental, social, and governance outcomes.

Which ESG fund has the lowest fees? The Vanguard ESG US Stock ETF (ESGV) stands out with an expense ratio of 0.09%, making it one of the most cost-effective options for broad US equity ESG exposure.

Can I invest in ESG funds through my 401(k)? Yes, many 401(k) plans now offer ESG options like the TIAA-CREF Social Choice Equity Fund or Fidelity's US Sustainability Index Fund (FITLX). Check with your plan administrator for specific fund availability.

Frequently Asked Questions About US ESG Funds

## Frequently Asked Questions About US ESG Funds

What is an ESG fund? An ESG fund invests in companies screened for Environmental, Social, and Governance criteria alongside financial returns.

What is the largest ESG mutual fund in the US? The Parnassus Core Equity Fund is the largest actively managed ESG mutual fund in the United States.

What is the oldest ESG fund in the US? Calvert Research and Management, founded in 1976, is considered the pioneer of US ESG investing.

Are there low-cost ESG index ETFs? Yes. The Vanguard ESG US Stock ETF (ESGV), iShares MSCI KLD 400 Social ETF (DSI), and Fidelity US Sustainability Index Fund (FITLX) all track broad ESG indexes with low expense ratios.

How much money is invested in US ESG funds? US ESG fund assets exceeded $2.5 trillion by 2024.

What is the difference between ESG and socially responsible investing (SRI)? SRI typically excludes controversial sectors, while ESG integrates environmental, social, and governance factors into the investment process.