The best Climate Change ETFs

How to invest in climate-friendly companies using ETFs

0.07% p.a. - 0.65% p.a.
annual total expense ratio (TER) of climate change ETFs
on climate-friendly companies, which are tracked by ETFs
on climate-friendly companies
 
The best indices for climate change ETFs

How do I invest in climate-friendly stocks?

The Paris Agreement on Climate Change and, before that, the Kyoto Protocol were important steps to avoid climate change. The agreement states that the global temperature should not rise by more than 1.5 degrees Celsius above pre-industrial levels. To achieve this aim, the use of fossil fuels has to be severely restricted and all other resources must be managed sustainably. This is also a responsibility of companies.

Index providers can evaluate how well companies are doing in this respect. Accordingly, companies with a favourable ecological footprint are given greater weights in climate-friendly indices. Usually, these indices are less strict than many other sustainable indices, in which the index providers also take social and governance criteria into account. Nevertheless, climate change indices and ETFs are in great demand as investments by major investors such as sovereign wealth funds, insurance companies or pension funds.

This investment guide on climate change will help you to select the best ETFs tracking climate-friendly indices. Currently, there are 19 indices which are tracked by ETFs.
 

MSCI World Climate Change CTB Select performance

1 month: 2.10%
1 year: 23.45%
3 years: 53.77%
 

Climate Change ETFs in comparison

The most important factors at a glance

When choosing a climate change ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all climate change ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all climate change ETFs in detail
Compare all climate change ETFs in a chart

Provider
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
Lyxor Net Zero 2050 S&P Eurozone Climate PAB (DR) UCITS ETF - AccLU2195226068 831 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor MSCI World Climate Change (DR) UCITS ETF - AccLU2056739464 171 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - DistLU2198883501 100 0.07% p.a. Distributing Luxembourg Full replication
Lyxor Net Zero 2050 S&P World Climate PAB (DR) UCITS ETF - AccLU2198882362 95 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - AccLU2198883410 95 0.07% p.a. Accumulating Luxembourg Full replication
HSBC MSCI World Climate Paris Aligned UCITS ETFIE00BP2C1V62 92 0.18% p.a. Accumulating Ireland Full replication
Amundi MSCI World Climate Paris Aligned PAB UCITS ETF DR - USD (C)LU2182388400 83 0.25% p.a. Accumulating Luxembourg Full replication
Franklin S&P 500 Paris Aligned Climate UCITS ETFIE00BMDPBZ72 58 0.07% p.a. Accumulating Ireland Full replication
HANetf iClima Global Decarbonisation Enablers UCITS ETFIE00BNC1F287 37 0.65% p.a. Accumulating Ireland Full replication
JPMorgan Carbon Transition Global Equity UCITS ETF USD (acc)IE00BMDWYZ92 29 0.19% p.a. Accumulating Ireland Full replication
Lyxor Net Zero 2050 S&P Europe Climate PAB (DR) UCITS ETF - AccLU2198884491 16 0.18% p.a. Accumulating Luxembourg Full replication
Lyxor MSCI USA ESG Climate Transition CTB (DR) UCITS ETF - AccLU2055175025 14 0.15% p.a. Accumulating Luxembourg Full replication
Amundi MSCI World Climate Transition CTB UCITS ETF DR USD (C)LU1602144492 12 0.25% p.a. Accumulating Luxembourg Full replication
HSBC MSCI Europe Climate Paris Aligned UCITS ETF EUR AccIE00BP2C0316 12 0.15% p.a. Accumulating Ireland Full replication
HSBC MSCI USA Climate Paris Aligned UCITS ETF USD AccIE00BP2C1S34 11 0.12% p.a. Accumulating Ireland Full replication
FlexShares Developed Markets High Dividend Climate ESG UCITS ETFIE00BMYDBM76 10 0.29% p.a. Distributing Ireland Full replication
Lyxor MSCI EM ESG Climate Transition CTB UCITS ETF - AccLU2056738144 9 0.25% p.a. Accumulating Luxembourg Unfunded swap
Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETFIE00BMDPBY65 8 0.15% p.a. Accumulating Ireland Full replication
Rize Environmental Impact 100 UCITS ETFIE00BLRPRR04 7 0.55% p.a. Accumulating Ireland Full replication
FlexShares Developed Markets Low Volatility Climate ESG UCITS ETFIE00BMYDBG17 4 0.25% p.a. Accumulating Ireland Full replication
Lyxor MSCI Europe ESG Climate Transition CTB (DR) UCITS ETF - AccLU2056738490 4 0.15% p.a. Accumulating Luxembourg Full replication
Invesco FTSE All Share ESG Climate UCITS ETF DistIE00BN7J5Z03 - 0.12% p.a. Distributing Ireland Full replication

Source: justETF.com; As of 20/10/2021

 

Return comparison of all climate change ETFs

The table shows the returns of all climate change ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

ETF   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
Franklin S&P 500 Paris Aligned Climate UCITS ETF -3.55% 4.46% 14.57% 26.61% -
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - Acc -3.37% 4.46% 14.48% 26.41% -
Lyxor Net Zero 2050 S&P Eurozone Climate PAB (DR) UCITS ETF - Acc -2.90% 1.86% 9.83% 26.18% -
Lyxor Net Zero 2050 S&P World Climate PAB (DR) UCITS ETF - Acc -2.65% 4.04% 12.91% 23.43% -
Lyxor MSCI World Climate Change (DR) UCITS ETF - Acc -2.46% 3.21% 11.23% 22.91% -
Amundi MSCI World Climate Transition CTB UCITS ETF DR USD (C) -2.36% 3.40% 11.39% 22.68% 42.23%
Amundi MSCI World Climate Paris Aligned PAB UCITS ETF DR - USD (C) -2.36% 3.39% 11.32% 22.41% -
Lyxor MSCI Europe ESG Climate Transition CTB (DR) UCITS ETF - Acc -4.06% 1.13% 8.75% 20.89% -
Lyxor Net Zero 2050 S&P Europe Climate PAB (DR) UCITS ETF - Acc -3.67% 1.53% 9.54% 19.73% -
Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF -3.79% 0.23% 8.23% 17.42% -
Lyxor MSCI EM ESG Climate Transition CTB UCITS ETF - Acc 0.19% -4.99% -1.01% 14.18% -
Lyxor MSCI USA ESG Climate Transition CTB (DR) UCITS ETF - Acc -16.74% -11.33% -3.38% 6.45% -
FlexShares Developed Markets High Dividend Climate ESG UCITS ETF -2.39% 1.66% 8.39% - -
FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF -2.78% 1.45% 8.50% - -
HANetf iClima Global Decarbonisation Enablers UCITS ETF -4.96% -1.90% 3.55% - -
HSBC MSCI Europe Climate Paris Aligned UCITS ETF EUR Acc -3.87% - - - -
HSBC MSCI USA Climate Paris Aligned UCITS ETF USD Acc -3.08% - - - -
HSBC MSCI World Climate Paris Aligned UCITS ETF -2.49% - - - -
Invesco FTSE All Share ESG Climate UCITS ETF Dist -1.43% 1.03% 6.61% - -
JPMorgan Carbon Transition Global Equity UCITS ETF USD (acc) -2.45% 2.27% 9.54% - -
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - Dist - - - - -
Rize Environmental Impact 100 UCITS ETF -3.97% - - - -
ETF   2021
in %
2020
in %
2019
in %
2018
in %
2017
in %
Franklin S&P 500 Paris Aligned Climate UCITS ETF 21.42% - - - -
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - Acc 21.07% - - - -
Lyxor Net Zero 2050 S&P World Climate PAB (DR) UCITS ETF - Acc 16.85% - - - -
Lyxor Net Zero 2050 S&P Eurozone Climate PAB (DR) UCITS ETF - Acc 14.59% - - - -
JPMorgan Carbon Transition Global Equity UCITS ETF USD (acc) 14.58% - - - -
Amundi MSCI World Climate Transition CTB UCITS ETF DR USD (C) 14.48% 13.89% 24.96% 3.35% -
Lyxor MSCI World Climate Change (DR) UCITS ETF - Acc 14.44% - - - -
Amundi MSCI World Climate Paris Aligned PAB UCITS ETF DR - USD (C) 14.24% - - - -
Lyxor Net Zero 2050 S&P Europe Climate PAB (DR) UCITS ETF - Acc 11.32% - - - -
Lyxor MSCI Europe ESG Climate Transition CTB (DR) UCITS ETF - Acc 11.07% - - - -
Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF 10.20% - - - -
HANetf iClima Global Decarbonisation Enablers UCITS ETF 5.34% - - - -
Lyxor MSCI EM ESG Climate Transition CTB UCITS ETF - Acc 0.37% - - - -
Lyxor MSCI USA ESG Climate Transition CTB (DR) UCITS ETF - Acc -0.19% - - - -
FlexShares Developed Markets High Dividend Climate ESG UCITS ETF - - - - -
FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF - - - - -
HSBC MSCI Europe Climate Paris Aligned UCITS ETF EUR Acc - - - - -
HSBC MSCI USA Climate Paris Aligned UCITS ETF USD Acc - - - - -
HSBC MSCI World Climate Paris Aligned UCITS ETF - - - - -
Invesco FTSE All Share ESG Climate UCITS ETF Dist - - - - -
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - Dist - - - - -
Rize Environmental Impact 100 UCITS ETF - - - - -

Source: justETF.com; As of 30/09/2021; Calculations in GBP including dividends