iShares MSCI USA ESG Select Is Rocking It

This member of the Kiplinger ETF 20 held up better than the broad market during the recent bear-market sell-off, and the fund has rebounded faster, too.

Planted penny grows into a dollar bill
(Image credit: Getty Images)

Funds that focus on sustainable stocks are killing it this year. Consider iShares MSCI USA ESG Select (SUSA), one of the Kiplinger ETF 20, the list of our favorite exchange-traded funds. Over the past 12 months, the ETF has gained 28.8%, which beat the 21.4% return of the S&P 500 index. It outpaced 84% of all ETFs that invest in large companies, too.

The MSCI USA ESG Select ETF holds stocks in companies that win the highest marks for environmental, social and governance factors. Scoring well involves much more than tree-hugging. Firms that shine in ESG terms tend to be mindful of their environmental impact, but they also treat employees, customers and their community well, and they have a diverse pool of ethical managers who are aligned with shareholder interests.

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.