The 5 Biggest ESG Funds for ESG Investing

Fund Size: £2.16bn
This fund, which was launched in 2017, attempts to track the MSCI Emerging Markets ESG Leaders Index. This fund aims to strike a balance between risk and reward by investing in high-growth emerging market equities with favorable environmental, social, and governance (ESG) ratings. This well-diversified portfolio of ESG favorable equities has doubled in size in the last two years which clearly indicates investor’s inclination towards green finance.

Fund Size: £1.55bn
This fund invests in equities, bonds, and other mutual funds, among other financial items. Despite the fact that the fund is labeled as an ESG fund, the fund managers are able to invest in both ESG and non-ESG assets. The primary goal of these mutual funds is to deliver long-term capital appreciation to investors. Multi-asset allocation funds are a solid alternative for anyone wishing to diversify their portfolio by acquiring exposure to a range of asset classes. Non-financial, sustainability issues can be incorporated into the investing process using Sustainability Characteristics. Investors can use these measures to assess funds’ environmental, social, and governance (ESG) risks and possibilities.

Fund Size: £1.25bn
This equity fund, which debuted in 2017, favours companies with a proven track record and/or a rising ESG rating. Federated Hermes has created their own environmental, social, and governance (ESG) rating system. This fund pursues long-term capital growth of global stocks by applying these proprietary ESG ratings, as well as other risk indicators. The Fund’s investment goal is to generate long-term capital growth by investing in global equity securities with favourable environmental, social, and governance (“ESG”) characteristics.

Fund Size: £1.21bn
The FTSE Developed All Cap Choice Index is tracked by this passive Vanguard ESG portfolio. The FTSE Developed All Cap Choice Index determines which assets are allowed under this fund’s ESG criteria. Non-Renewable Energy (Nuclear Power, Fossil Fuels), Vice Products (Adult Entertainment, Alcohol, Gambling, Tobacco), and Weapons (Civilian Firearms, Controversial Military Weapons, Conventional Military Weapons) are excluded from this index. The goal of these investments, which are frequently undertaken in private markets, is to have a positive societal or environmental impact as well as a financial return. The Fund invests in assets denominated in currencies other than the US dollar. Then the currency of the share class Currency exchange rate fluctuations can have an impact on investment returns.