Best ESG ETFs to Buy in 2026

The Vanguard ESG International Stock ETF (VSGX -0.14%) holds about 6,600 stocks. Its regional allocation includes 35% in European companies, 28% in emerging markets, and 28% in the Pacific.

The fund’s benchmark index uses ESG exclusionary principles, avoiding companies that derive revenue from the production, supplying, or retailing of:

• Controversial weapons.
• Civilian firearms.
• Nuclear power.
• Fossil fuels.
• Tobacco.
• Cannabis.
• Conventional military weapons.
• Alcohol.
• Gambling.
• Adult entertainment.

Companies are also filtered for workplace and board diversity, labor and human rights principles, and environmental standards. To be included, companies must also meet the U.N. Global Compact principles.

The largest holdings include Taiwan Semiconductor Manufacturing (TSM +0.42%), ASML Holding NV, Alibaba Group Holding (BABA -0.31%), and Samsung Electronics Co. Ltd. (OTC:SSNFL).

The fund delivered one-year returns of about 26% as of late April 2026. Its long-term performance has been relatively poor, with five-year returns of about 6%. However, if you want significant exposure to companies with strong ESG standards in emerging markets, you might want to check out the VSGX ETF.