Best ESG ETFs (2026)

Which ESG or sustainable fund to hold — 11 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.

Updated July 25, 2026

Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.

Top Picks Right Now

#1
ESGU
iShares ESG Aware MSCI USA ETF
B 71.2/100
  • largest and most liquid at $17.7B
#2
ESGE
iShares ESG Aware MSCI EM ETF
B 71.1/100
  • scores 71.1 on the overall model (grade B)
#3
VSGX
Vanguard ESG International Stock ETF
B 70.9/100
  • scores 70.9 on the overall model (grade B)

Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.

At a Glance

Cheapest
ESGV
0.09%
Highest yield
ESGD
3.33%
Best risk-adjusted
EFIV
Sharpe 1.17
Largest
ESGU
$17.7B
Shallowest drawdown
VSGX
-13.8%

Each superlative is measured within this group of 11 funds, not across the whole market.

All 11 Funds Ranked

FundCategoryCostYield1Y3YVolatilityMax DDSharpeAUMScoreGrade
1 ESGUiShares ESG Aware MSCI USA ETFESG0.15%0.94%+18.3%+66.4%12.9%-19.3%1.03$17.7B71.2B
2 ESGEiShares ESG Aware MSCI EM ETFESG0.25%2.07%+28.7%+63.6%24.0%-16.7%0.99$6.9B71.1B
3 VSGXVanguard ESG International Stock ETFESG0.10%2.92%+21.6%+57.3%18.1%-13.8%0.92$6.7B70.9B
4 EFIVState Street SPDR S&P 500 ESG ETFESG0.10%0.96%+19.8%+66.0%12.6%-19.2%1.17$1.1B69.2B
5 SUSAiShares ESG Optimized MSCI USA ETFESG0.25%0.84%+18.9%+61.9%13.1%-19.3%1.06$4.0B67.9B
6 SPYXState Street SPDR S&P 500 Fossil Fuel Reserves Free ETFESG0.20%0.86%+17.4%+67.6%12.9%-18.7%0.96$2.7B66.2B
7 ESGVVanguard ESG U.S. Stock ETFESG0.09%0.87%+16.9%+65.8%14.4%-20.4%0.83$13.2B65.4B
8 ESGDiShares ESG Aware MSCI EAFE ETFESG0.20%3.33%+16.4%+51.1%15.8%-13.9%0.72$11.8B65.4B
9 CRBNiShares Low Carbon Optimized MSCI ACWI ETFESG0.20%2.02%+17.5%+63.5%14.0%-16.6%0.89$1.1B64.0C
10 SUSLiShares ESG MSCI USA Leaders ETFESG0.10%0.94%+17.3%+67.4%13.7%-19.9%0.90$1.2B63.3C
11 DSIiShares ESG MSCI KLD 400 ETFESG0.25%0.87%+16.0%+63.3%14.1%-20.6%0.78$5.4B61.3C

Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.

What Makes a Good Fund Here

ESG funds vary enormously in how strictly they screen. Some exclude only a handful of industries and otherwise track the market closely; others reweight substantially. Check what a fund actually excludes rather than relying on the label.

The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.

Head-to-Head Comparisons

Full metric-by-metric breakdowns for the closest calls in this group.

Frequently Asked Questions

What is the best ESG ETF?

ESGU ranks highest of the 11 ESG funds tracked, scoring 71.2 (B). ESGV is the cheapest at 0.09%.

Do ESG ETFs underperform?

The evidence is mixed and depends heavily on the period and the screen. Broad ESG funds that exclude relatively little tend to track the market closely; stricter screens produce larger deviations in both directions.

Compare any of these funds directly

Side-by-side metrics, holdings overlap and return correlation for any pair.

Other Rankings