Best ESG & Climate ETFs
Published by Radif Partners · Updated
IntermediateCompare ETFs focused on environmental, social and governance criteria, and clean energy. Invest sustainably without sacrificing returns.
This guide reviews 37 ESG & Climate ETFs funds available in Europe. They track 36 different indices, which is the first thing to check: two funds filed under the same theme do not necessarily hold the same securities, and a one-year performance gap is often explained by that rather than by how the fund is run. Their ongoing charges start at 0.07% for an average of 0.28%, and 15 of them pay their dividends out while the rest reinvest them. 28 are domiciled in IE, which sets the withholding tax the fund suffers on the dividends it receives. The oldest, ESGE, launched in 2005, giving 21 years of history, enough to see how it behaved in a fall. The order on this page does not follow past performance: over the horizons published it says more about the index tracked than about how the fund is run, and it does not repeat. What counts are the fees, the assets and the tracking quality, the figures that are known in advance.
Updated 2025-05
ESG (Environmental, Social, Governance) investing has seen explosive growth in recent years, driven by growing climate awareness and European regulatory developments. ESG and climate ETFs allow you to invest in companies that meet certain sustainability criteria, while excluding controversial sectors like coal, tobacco or weapons.
In Europe, the SFDR regulation (Sustainable Finance Disclosure Regulation) classifies funds by their degree of sustainable commitment: Article 6 (no specific sustainability objective), Article 8 (promotes ESG characteristics) and Article 9 (sustainable investment objective). Most available ESG ETFs are classified as Article 8, while the most ambitious climate funds target Article 9.
ESG indices take several forms: "screened" indices (SRI, ESG Leaders) exclude the lowest-rated companies, "Paris-Aligned" (PAB) or "Climate Transition" (CTB) indices focus on carbon emission reduction trajectories, and "Clean Energy" indices specifically target renewable energy companies. This comparison helps you navigate this growing universe to find the ESG ETF that matches your convictions and financial goals.
0.28%
+4.9%
130.9B
37
ESGU, MSCI USA Extended ESG Focus
iShares ESG Aware MSCI USA ETF
Simulated from available data points. Past returns do not guarantee future results.
Best Performance
Lowest Cost
Largest Funds
How to choose an ESG or climate ETF
The first choice is between a "broad" ESG ETF and a "pure" climate ETF. An MSCI World SRI or ESG Screened ETF maintains sector diversification close to the parent index, simply excluding the lowest-rated companies, performance therefore stays highly correlated with the standard MSCI World. A Paris-Aligned or Clean Energy ETF is more concentrated and can diverge significantly from the benchmark.
ESG ETF fees are generally slightly higher than their conventional equivalents, but the gap is shrinking. You can now find MSCI World SRI ETFs with a TER of 0.18-0.25%, compared to 0.12-0.20% for a standard MSCI World. AUM and liquidity are important criteria: ESG ETFs from iShares, Amundi and Xtrackers have the largest fund sizes.
Beware of "greenwashing": check the underlying index methodology. Some ETFs labelled ESG only exclude a small percentage of companies and remain very close to the standard index. SRI (Socially Responsible Investment) indices generally apply stricter filters than simple "ESG Screened" versions. Review the index documentation to understand exactly which exclusion and selection criteria are applied.
Full Comparison
| # | Name | TER | AUM | Replication | Distribution | 1Y | 3Y | 5Y | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | ESGUiShares MSCI USA Extended ESG Focus | 0.15% | 17.9B | physical | distributing | +12.6% | +21.8% | +9.9% | |
| 2 | USEAiShares MSCI USA ESG Enhanced Focus CTB | 0.07% | 14.0B | physical | accumulating | – | – | – | |
| 3 | WLDSiShares MSCI World ESG Screened | 0.20% | 8.8B | physical | accumulating | -15.3% | +16.6% | +6.7% | |
| 4 | SUUSiShares MSCI USA ESG Screened | 0.07% | 8.5B | physical | accumulating | +16.7% | +15.8% | +10.1% | |
| 5 | DFNGXtrackers MSCI World Low Carbon SRI Leaders | 0.20% | 6.9B | physical | accumulating | -9.8% | +31.8% | – | |
| 6 | VDNRVanguard FTSE Global All Cap Choice | 0.24% | 6.8B | physical | distributing | +14.4% | +23.2% | +10.7% | |
| 7 | SUSWiShares MSCI World SRI Select Reduced Fossil Fuels | 0.20% | 6.7B | physical | accumulating | +16.7% | +16.4% | +8.9% | |
| 8 | USRIXtrackers MSCI USA ESG Leaders Low Carbon ex Tobacco | 0.15% | 5.5B | physical | accumulating | – | – | – | |
| 9 | IESEiShares MSCI Europe SRI Select Reduced Fossil Fuels | 0.20% | 5.4B | physical | accumulating | +9.7% | +11.1% | +4.7% | |
| 10 | CLWDiShares MSCI World ESG Screened | 0.20% | 4.6B | physical | accumulating | – | – | – | |
| 11 | SUSAiShares MSCI USA ESG Select | 0.25% | 4.0B | physical | distributing | +12.8% | +21.1% | +8.9% | |
| 12 | WSRIAmundi MSCI World SRI Filtered PAB | 0.18% | 4.0B | physical | accumulating | +18.6% | +9.5% | +4.4% | |
| 13 | SUESiShares MSCI EM SRI Select Reduced Fossil Fuels | 0.25% | 3.9B | physical | accumulating | +17.1% | +16.1% | +5.0% | |
| 14 | SUSMiShares MSCI World Small Cap ESG Enhanced Focus CTB | 0.35% | 3.9B | physical | accumulating | +17.0% | +19.6% | +4.3% | |
| 15 | SUASiShares MSCI USA SRI Select Reduced Fossil Fuels | 0.20% | 3.7B | physical | accumulating | +16.0% | +19.6% | +9.5% | |
| 16 | INRGiShares S&P Global Clean Energy Transition | 0.65% | 3.4B | physical | distributing | +1.5% | +5.0% | -6.2% | |
| 17 | ICLNiShares S&P Global Clean Energy | 0.40% | 2.2B | physical | distributing | -2.2% | +7.1% | -7.1% | |
| 18 | IH2OiShares S&P Global Water | 0.65% | 2.1B | physical | distributing | -2.6% | +9.3% | +2.4% | |
| 19 | ERNSiShares Bloomberg MSCI EUR Corporate 0-3 Sustainable SRI | 0.12% | 2.0B | physical | distributing | -1.2% | -0.4% | +0.1% | |
| 20 | WPABiShares MSCI World Climate Paris Aligned Benchmark | 0.20% | 1.8B | physical | accumulating | – | – | – | |
| 21 | XMEMXtrackers MSCI Emerging Markets Select ESG Screened | 0.18% | 1.5B | physical | accumulating | +6.0% | +21.1% | +7.8% | |
| 22 | ESGVInvesco MSCI World ESG Universal Select Business Screens | 0.19% | 1.5B | physical | accumulating | – | – | – | |
| 23 | PUSTAmundi Solactive US Large & Mid Cap Technology | 0.30% | 1.3B | synthetic | accumulating | +20.6% | +25.1% | +15.1% | |
| 24 | ESGEBNP Paribas CAC 40 ESG | 0.25% | 1.2B | physical | distributing | +12.7% | +14.6% | +7.7% | |
| 25 | SJPAiShares MSCI Japan SRI Select Reduced Fossil Fuels | 0.20% | 1.2B | physical | accumulating | -8.9% | +18.1% | +10.3% | |
| 26 | SUAGiShares Bloomberg MSCI USD Corporate Sustainable SRI | 0.15% | 1.2B | physical | distributing | -5.8% | -2.1% | -2.9% | |
| 27 | SAWDiShares MSCI World Climate Paris Aligned Benchmark Select | 0.20% | 1.0B | physical | accumulating | +13.2% | +23.6% | +11.1% | |
| 28 | USDVSPDR S&P ESG High Yield Dividend Aristocrats | 0.35% | 900M | physical | distributing | +11.0% | +8.3% | +5.2% | |
| 29 | LOWCiShares MSCI World Low Carbon Target | 0.20% | 900M | physical | distributing | – | – | – | |
| 30 | TANInvesco MAC Global Solar Energy | 0.67% | 900M | physical | distributing | -13.0% | -1.6% | -13.9% | |
| 31 | GLGGL&G Solactive Clean Water | 0.49% | 653M | physical | accumulating | -2.3% | +10.2% | +5.3% | |
| 32 | ESGBiShares Bloomberg MSCI EUR Corporate Liquid Bond Screened | 0.12% | 612M | physical | distributing | -11.5% | +25.0% | +10.1% | |
| 33 | ECARiShares STOXX Global Electric Vehicles & Driving Technology | 0.40% | 601M | physical | accumulating | +25.1% | +22.7% | +8.0% | |
| 34 | QCLNFirst Trust NASDAQ Clean Edge Green Energy | 0.58% | 551M | physical | distributing | -5.8% | +6.3% | -8.8% | |
| 35 | PBWInvesco WilderHill Clean Energy | 0.62% | 336M | physical | distributing | -24.9% | -1.7% | -20.7% | |
| 36 | ESGWUBS MSCI World SRI Low Carbon Select 5% Issuer Capped | 0.22% | 314M | physical | accumulating | +15.2% | +23.0% | +10.5% | |
| 37 | FOODRize Foxberry Tematica Research Sustainable Future of Food | 0.45% | 57M | physical | accumulating | -0.7% | +2.3% | -8.9% |
Key takeaways
- 1MSCI World SRI ETFs offer a good balance between sustainable convictions and diversification, with fees starting from 0.18%.
- 2The historical performance of ESG ETFs is comparable to conventional indices, responsible investing doesn't mean sacrificing returns.
- 3Paris-Aligned (PAB) indices incorporate a carbon reduction trajectory aligned with the Paris Agreement: -7% emissions per year.
- 4Clean Energy ETFs are far more volatile and concentrated than broad ESG ETFs, they're a thematic bet, not a core portfolio replacement.
- 5The SFDR classification (Article 8 or 9) provides a first level of reading, but doesn't replace analysis of the index methodology.
- 6Several ESG ETFs are PEA-eligible (Amundi MSCI World SRI), combining tax advantages with responsible investing.
Frequently asked questions
Does an ESG ETF perform as well as a conventional ETF?
What's the difference between ESG Screened, SRI and Paris-Aligned?
Are ESG ETFs PEA-eligible?
What do the labels SRI, PAB and CTB mean?
Do ESG ETFs underperform traditional ETFs?
How can I avoid greenwashing in ESG ETFs?
Data sourced from fund factsheets. Last updated 2025-05.