17 Best Sustainable Investment Funds Worth Looking at in 2026

2. iShares MSCI KLD 400 Social ETF - America's Sustainable Leaders

The iShares MSCI KLD 400 Social ETF represents one of the longest-standing and most respected sustainable investment vehicles in the American market, tracking companies that demonstrate outstanding ESG characteristics while maintaining strong financial fundamentals. This fund focuses exclusively on U.S. companies that have been screened for positive ESG practices, excluding those involved in tobacco, weapons, nuclear power, and other controversial industries while emphasizing leaders in sustainability innovation. The fund's methodology combines negative screening with positive selection, identifying companies that not only avoid harmful practices but actively contribute to sustainable solutions through their business models and operations. With a diverse portfolio spanning technology, healthcare, consumer goods, and financial services, the fund provides broad exposure to American companies that are driving the sustainability revolution. In 2026, the fund has particularly benefited from the continued growth of the U.S. clean energy sector and the increasing adoption of sustainable business practices across traditional industries. The fund's strong track record of outperforming traditional broad market indices while maintaining lower volatility demonstrates the financial benefits of investing in companies with strong ESG practices and long-term thinking.