Top 10 US ESG Investing Funds

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. It was acquired by Morgan Stanley Investment Management in 2016 and offers 40% lower expense ratios than the typical ESG asset manager.

Calvert Research and Management

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).

Vanguard ESG US Stock ETF (ESGV)

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. Its expense ratio is 0.25%, which is 40% cheaper than the average actively managed ESG fund.

iShares MSCI KLD 400 Social ETF (DSI)

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. It outperforms #2 on this list, Nuveen ESG Large-Cap Growth ETF, by offering a lower expense ratio of 0.18% compared to NULG's 0.26%, resulting in estimated annual savings of $80 per $10,000 invested.

TIAA-CREF Social Choice Equity Fund

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. With an expense ratio of 0.26%, NULG is 44% cheaper than the average large-cap growth ETF, which charges 0.47%, saving investors $21 annually per $10,000 invested.

Nuveen ESG Large-Cap Growth ETF (NULG)

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%. This fund is cheaper than the average US sustainable equity fund's 0.52% expense ratio by 65%, and it has outperformed the typical rival in its category by 1.3% annually over the past five years.

DFA US Sustainability Core 1 Portfolio

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. With a $15.2 billion AUM, it is 1.9 times larger than #3 on this list, DFA US Sustainability Core 1 Portfolio’s $8 billion, and its five-year annualized return of 14.2% beats the average ESG fund's 12.8% by 1.4 percentage points.

Northern Trust ESG Equity Index Fund

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 #3 Vanguard FTSE Social Index Fund by including stricter fossil fuel screens. Fidelity now manages over $20B across its ESG fund lineup.

Fidelity US Sustainability Index Fund (FITLX)

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.

Putnam Sustainable Leaders Fund