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5 Best Sustainable Investing Funds in 2026
Ruby Layram
25th Mar 2026
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Sustainable investing isn’t just a trend anymore, it’s becoming the default way many people invest.
Whether it’s climate change, ethical business practices, or just wanting your money to do a bit of good in the world, more investors are asking the same question: “Can I grow my money AND invest responsibly?”
The answer is yes, and that’s where sustainable investing funds come in.
In this guide, we’ll break down 5 of the best sustainable investing funds in 2026, plus what to look for before you invest.
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What Are Sustainable Investing Funds?
Sustainable investing funds (sometimes called ESG funds) invest in companies that meet certain standards around:
- Environmental impact (e.g. clean energy, low emissions)
- Social responsibility (e.g. fair labour practices)
- Governance (e.g. ethical leadership and transparency)
Instead of just focusing on profits, these funds aim to balance returns with responsibility.
And importantly, many of them have performed very well in recent years.
What Makes a Good Sustainable Fund?
Before we jump into the list, here’s what we’re looking for:
- Strong long-term growth potential
- Clear ESG or sustainability focus
- Low to reasonable fees
- Diversification across sectors and regions
Because like any investment, it still needs to perform financially.
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1. Vanguard ESG Global All Cap UCITS ETF
This is one of the most popular sustainable investing funds for a reason.
It tracks a broad global index while filtering out companies that don’t meet ESG criteria. Think of it as a “cleaner” version of a global index fund.
Why it stands out:
- Exposure to thousands of global companies
- Low fees (typical Vanguard style)
- Strong diversification
Best for: Long-term investors who want a simple, all-in-one sustainable option.
2. iShares Global Clean Energy UCITS ETF
If you want to lean more heavily into sustainability, this one focuses specifically on renewable energy.
It invests in companies involved in:
- Solar
- Wind
- Renewable infrastructure
Why it stands out:
- Direct exposure to the energy transition
- High growth potential
- Strong long-term theme
Best for: Investors who believe clean energy will dominate the future.
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3. Baillie Gifford Positive Change Fund
This actively managed fund takes a slightly different approach.
Instead of tracking an index, it invests in companies aiming to solve global challenges, like healthcare, education, and climate change.
Why it stands out:
- Focus on “impact investing”
- Backed by a well-known UK investment firm
- Strong long-term growth focus
Best for: Investors who want their money to actively support positive global change.
4. Legal & General Future World ESG Developed Index Fund
This fund tracks developed markets but adjusts company weightings based on ESG factors.
In simple terms, better-behaved companies get more weight.
Why it stands out:
- Broad exposure to developed markets
- ESG integration without sacrificing diversification
- Competitive fees
Best for: Investors who want a balanced, mainstream ESG option.
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5. Pictet: Global Environmental Opportunities Fund
This fund focuses on companies providing environmental solutions, such as:
- Water management
- Clean energy
- Sustainable infrastructure
Why it stands out:
- Strong thematic focus
- Exposure to future global challenges
- Long-term growth potential
Best for: Investors looking for targeted exposure to environmental innovation.
Are Sustainable Investing Funds Worth It?
Short answer: they can be, if you choose wisely!
Here’s why many investors are turning to sustainable investing funds:
You align your money with your values
You’re not just investing for returns, you’re supporting companies doing things “better”.
Long-term growth potential
Sectors like clean energy and sustainability are expected to grow significantly over the next decade.
Increasing demand
More investors and institutions are moving into ESG, which can support long-term fund performance.
But There Are a Few Things to Watch
Sustainable investing isn’t perfect.
Here are a few things to keep in mind:
- Greenwashing: some funds claim to be “sustainable” but aren’t as strict as they seem
- Higher fees: actively managed ESG funds can cost more
- Sector concentration: some funds lean heavily into tech or energy
Always check what’s actually inside the fund before investing.
Read: How to know if your fund is genuinely green
How to Choose the Right One for You
Ask yourself:
- Do I want a broad ESG fund or a specific theme (like clean energy)?
- Am I happy with higher risk for higher potential returns?
- Do I prefer passive (ETF) or active management?
There’s no one-size-fits-all answer, it depends on your goals.
Final Thoughts
Sustainable investing funds are no longer niche, they’re becoming a core part of many modern portfolios.
The best funds combine:
- Strong long-term growth
- Real sustainability impact
- Low costs and diversification
If you’re investing for the future, it makes sense to invest in companies that are building that future.
Want to Build a Sustainable Portfolio Properly?
If you’re reading this and thinking: “I like the idea… but I’m not totally sure how to build this into a full portfolio”
That’s completely normal.
This is exactly what we cover inside the MoneyMagpie Invest course, a simple, step-by-step guide that shows you:
- How to choose the right funds
- How to build a diversified portfolio
- How to invest with confidence (without overthinking it)
It’s designed to take you from saving money to actually growing it, with purpose.
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Disclaimer: MoneyMagpie is not a licensed financial advisor. This article is for informational and educational purposes only. Investments can go down as well as up, and you should always do your own research before investing.
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