17 Best Sustainable Investment Funds Worth Looking at in 2026

9. Schwab Fundamental ESG Large Company Index Fund - Value-Driven Sustainability

The Schwab Fundamental ESG Large Company Index Fund combines fundamental analysis with ESG screening to identify large-cap companies that offer both strong financial fundamentals and leadership in sustainability practices. This fund employs a unique fundamental weighting methodology that weights companies based on fundamental measures of company size such as sales, cash flow, dividends, and book value, rather than market capitalization, while applying ESG screens to ensure portfolio companies meet high sustainability standards. This approach helps avoid the concentration risk often associated with market-cap weighted indices while ensuring exposure to companies with strong business fundamentals and sustainable practices. The fund's methodology tends to favor value-oriented companies that may be underappreciated by the market but have strong underlying business fundamentals and improving ESG practices. In 2026, the fund has benefited from the market's increasing recognition of the value inherent in companies with strong ESG practices and solid fundamental characteristics. The fund's focus on fundamental metrics helps identify companies that are generating real economic value while contributing to sustainable development, providing investors with exposure to potentially undervalued companies that are positioned for long-term outperformance as ESG factors become increasingly important to business success.