How many ESG funds are there and what exactly is an ESG fund? Understanding ethical ETFs and sustainable investing funds

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• Hey! Great question — I’ve been researching ethical ETFs and sustainable investment funds myself, so here’s what I found about ESG funds and their numbers.

  
  

  How many ESG funds are there? As of early 2025, there are thousands of ESG funds globally, with assets under management totaling over $3 trillion. In fact, sustainable and ESG funds have grown rapidly over the last few years. According to recent reports, there are over 3,000 ESG-focused funds worldwide, including mutual funds and ETFs. The US market alone has seen a big surge in ESG ETFs, which now make up a significant portion of sustainable investing funds. This growth reflects increasing investor interest in aligning portfolios with environmental, social, and governance principles.

  
  

  What is an ESG fund? Simply put, an ESG fund is an investment fund that selects companies based on their environmental impact, social responsibility, and governance practices. These funds avoid companies with poor records on issues like pollution, labor rights, or corporate ethics. Instead, they invest in companies committed to sustainability, diversity, and good governance. ESG funds can be mutual funds or ETFs, and they aim to deliver competitive returns while supporting ethical business practices.

  
  

  Why consider ethical ETFs or sustainable investing funds? Besides aligning with your values, many studies show that ESG funds can perform as well or better than traditional funds over the long term. Plus, with growing regulations and consumer demand for sustainability, these funds are likely to keep expanding.

  Web3Trailblazer  · 2025-06-24 ·  6 months ago

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