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 37 indices which are tracked by ETFs.
 

MSCI World Climate Change CTB Select performance

1 month: 7.72%
1 year: 3.00%
3 years: 36.78%
5 years: 73.66%
 

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
Amundi Index MSCI Europe ESG Broad CTB UCITS ETF DR EUR (C)LU1681042609 1,673 0.12% p.a. Accumulating Luxembourg Full replication
Lyxor Net Zero 2050 S&P Eurozone Climate PAB (DR) UCITS ETF - AccLU2195226068 1,173 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor MSCI USA ESG Broad CTB (DR) UCITS ETF - DistFR0010296061 860 0.09% p.a. Distributing France Full replication
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - AccLU2198883410 344 0.07% p.a. Accumulating Luxembourg Full replication
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - DistLU2198883501 311 0.07% p.a. Distributing Luxembourg Full replication
UBS ETF (LU) MSCI China ESG Universal Low Carbon Select UCITS ETF (USD) A-disLU1953188833 284 0.45% p.a. Distributing Luxembourg Full replication
Lyxor Net Zero 2050 S&P World Climate PAB (DR) UCITS ETF - AccLU2198882362 183 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor MSCI World Climate Change (DR) UCITS ETF - AccLU2056739464 175 0.20% p.a. Accumulating Luxembourg Full replication
Amundi MSCI World Climate Paris Aligned PAB UCITS ETF DR - USD (C)LU2182388400 165 0.25% p.a. Accumulating Luxembourg Full replication
HSBC MSCI World Climate Paris Aligned UCITS ETFIE00BP2C1V62 146 0.18% p.a. Accumulating Ireland Full replication
Franklin S&P 500 Paris Aligned Climate UCITS ETFIE00BMDPBZ72 93 0.07% p.a. Accumulating Ireland Full replication
Invesco FTSE All Share ESG Climate UCITS ETF AccIE0003RA2ZR3 73 0.12% p.a. Accumulating Ireland Full replication
Lyxor MSCI EM ESG Climate Transition CTB UCITS ETF - AccLU2056738144 49 0.25% p.a. Accumulating Luxembourg Unfunded swap
HANetf iClima Global Decarbonisation Enablers UCITS ETFIE00BNC1F287 46 0.65% p.a. Accumulating Ireland Full replication
JPMorgan Carbon Transition Global Equity UCITS ETF USD (acc)IE00BMDWYZ92 34 0.19% p.a. Accumulating Ireland Full replication
Lyxor MSCI USA ESG Climate Transition CTB (DR) UCITS ETF - AccLU2055175025 24 0.15% p.a. Accumulating Luxembourg Full replication
Invesco FTSE All Share ESG Climate UCITS ETF DistIE00BN7J5Z03 24 0.12% p.a. Distributing Ireland Full replication
HSBC MSCI USA Climate Paris Aligned UCITS ETF USD AccIE00BP2C1S34 21 0.12% p.a. Accumulating Ireland Full replication
HSBC MSCI Emerging Markets Climate Paris Aligned UCITS ETFIE000FNVOB27 18 0.18% p.a. Accumulating Ireland Full replication
HSBC MSCI AC Asia Pacific ex Japan Climate Paris Aligned UCITS ETFIE000XFORJ80 18 0.25% p.a. Accumulating Ireland Full replication
Rize Environmental Impact 100 UCITS ETFIE00BLRPRR04 18 0.55% p.a. Accumulating Ireland Full replication
Lyxor Net Zero 2050 S&P Europe Climate PAB (DR) UCITS ETF - AccLU2198884491 18 0.18% p.a. Accumulating Luxembourg Full replication
Lyxor MSCI EMU ESG Broad CTB (DR) UCITS ETF DistLU0908501132 17 0.12% p.a. Distributing Luxembourg Full replication
Xtrackers World Net Zero Pathway Paris Aligned UCITS ETF 1CIE000UZCJS58 16 0.19% p.a. Accumulating Ireland Full replication
FlexShares Developed Markets High Dividend Climate ESG UCITS ETFIE00BMYDBM76 14 0.29% p.a. Distributing Ireland Full replication
Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETFIE00BMDPBY65 13 0.15% p.a. Accumulating Ireland Full replication
Amundi MSCI World Climate Transition CTB UCITS ETF DR USD (C)LU1602144492 13 0.25% p.a. Accumulating Luxembourg Full replication
Xtrackers EMU Net Zero Pathway Paris Aligned UCITS ETF 1CIE000Y6L6LE6 11 0.15% p.a. Accumulating Ireland Full replication
HSBC MSCI Europe Climate Paris Aligned UCITS ETF EUR AccIE00BP2C0316 11 0.15% p.a. Accumulating Ireland Full replication
HSBC MSCI Japan Climate Paris Aligned UCITS ETFIE000UU299V4 10 0.18% p.a. Accumulating Ireland Full replication
FlexShares Developed Markets Low Volatility Climate ESG UCITS ETFIE00BMYDBG17 4 0.25% p.a. Accumulating Ireland Full replication
iShares S&P 500 Paris-Aligned Climate UCITS ETF USD (Dist)IE000G4PH2B1 4 0.07% p.a. Distributing Ireland Full replication
Lyxor MSCI Europe ESG Climate Transition CTB (DR) UCITS ETF - AccLU2056738490 4 0.15% p.a. Accumulating Luxembourg Full replication
SPDR MSCI Emerging Markets Climate Paris Aligned UCITS ETF Acc USDIE00BYTH5263 3 0.23% p.a. Accumulating Ireland Full replication
SPDR MSCI ACWI Climate Paris Aligned UCITS ETF Acc USDIE00BYTH5370 3 0.20% p.a. Accumulating Ireland Full replication
WisdomTree Recycling Decarbonisation UCITS ETF USD AccIE000LG4J7E7 2 0.45% p.a. Accumulating Ireland Full replication
Franklin MSCI China Paris Aligned Climate UCITS ETFIE000EBPC0Z7 2 0.22% p.a. Accumulating Ireland Full replication
SPDR MSCI World Climate Paris Aligned UCITS ETF Acc USDIE00BYTH5594 2 0.15% p.a. Accumulating Ireland Full replication
Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF AccIE000TI21P14 2 0.16% p.a. Accumulating Ireland Full replication
Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF AccIE000RLUE8E9 1 0.09% p.a. Accumulating Ireland Full replication
Invesco MSCI World ESG Climate Paris Aligned UCITS ETF AccIE000V93BNU0 1 0.19% p.a. Accumulating Ireland Full replication
Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF AccIE000I8IKC59 1 0.19% p.a. Accumulating Ireland Full replication
SPDR MSCI Europe Climate Paris Aligned UCITS ETF Acc EURIE00BYTH5487 1 0.15% p.a. Accumulating Ireland Full replication
SPDR MSCI USA Climate Paris Aligned UCITS ETF Acc USDIE00BYTH5719 1 0.12% p.a. Accumulating Ireland Full replication
Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF AccIE000PJL7R74 1 0.19% p.a. Accumulating Ireland Full replication

Source: justETF.com; As of 11/08/2022

 

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 %
FlexShares Developed Markets High Dividend Climate ESG UCITS ETF 7.01% 0.88% 0.27% 7.42% -
Franklin S&P 500 Paris Aligned Climate UCITS ETF 9.34% 3.97% -0.74% 5.58% -
JPMorgan Carbon Transition Global Equity UCITS ETF USD (acc) 6.92% 1.97% -0.24% 5.47% -
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - Acc 9.33% 3.95% -0.79% 5.44% -
FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF 4.86% 1.23% 1.28% 5.28% -
Lyxor MSCI USA ESG Broad CTB (DR) UCITS ETF - Dist 9.68% 3.38% 0.48% 5.18% 42.09%
Invesco FTSE All Share ESG Climate UCITS ETF Dist 4.71% -0.79% -1.03% 5.07% -
Amundi MSCI World Climate Transition CTB UCITS ETF DR USD (C) 8.84% 2.59% -0.52% 3.44% 32.38%
Lyxor MSCI World Climate Change (DR) UCITS ETF - Acc 8.75% 2.35% -0.76% 3.37% -
Lyxor MSCI USA ESG Climate Transition CTB (DR) UCITS ETF - Acc 11.53% 3.85% -0.55% 3.34% -
Amundi MSCI World Climate Paris Aligned PAB UCITS ETF DR - USD (C) 8.88% 2.52% -0.76% 3.17% -
HSBC MSCI World Climate Paris Aligned UCITS ETF 8.46% 2.37% -0.45% 2.49% -
Lyxor Net Zero 2050 S&P World Climate PAB (DR) UCITS ETF - Acc 8.48% 2.34% -2.13% 0.86% -
Rize Environmental Impact 100 UCITS ETF 11.60% 2.89% 3.79% -1.66% -
Amundi Index MSCI Europe ESG Broad CTB UCITS ETF DR EUR (C) 6.01% -1.34% -3.38% -2.68% 11.27%
Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF 6.18% -0.73% -2.15% -3.28% -
Lyxor MSCI Europe ESG Climate Transition CTB (DR) UCITS ETF - Acc 7.22% -1.62% -2.88% -4.33% -
Lyxor Net Zero 2050 S&P Europe Climate PAB (DR) UCITS ETF - Acc 6.62% -0.59% -2.92% -4.34% -
HANetf iClima Global Decarbonisation Enablers UCITS ETF 11.56% 7.78% 5.46% -6.19% -
Lyxor MSCI EM ESG Climate Transition CTB UCITS ETF - Acc 1.53% -2.09% -7.28% -8.34% -
Lyxor MSCI EMU ESG Broad CTB (DR) UCITS ETF Dist 5.88% -1.44% -8.73% -9.65% 6.79%
Lyxor Net Zero 2050 S&P Eurozone Climate PAB (DR) UCITS ETF - Acc 6.20% -1.01% -9.92% -12.27% -
UBS ETF (LU) MSCI China ESG Universal Low Carbon Select UCITS ETF (USD) A-dis -9.45% 3.11% -7.13% -14.99% -3.90%
Franklin MSCI China Paris Aligned Climate UCITS ETF -9.01% - - - -
HSBC MSCI AC Asia Pacific ex Japan Climate Paris Aligned UCITS ETF 0.55% -0.39% - - -
HSBC MSCI Emerging Markets Climate Paris Aligned UCITS ETF 0.38% -0.85% - - -
HSBC MSCI Europe Climate Paris Aligned UCITS ETF EUR Acc 7.17% -0.69% -2.52% - -
HSBC MSCI Japan Climate Paris Aligned UCITS ETF 7.77% 3.64% -2.79% - -
HSBC MSCI USA Climate Paris Aligned UCITS ETF USD Acc 10.34% 4.94% 0.46% - -
Invesco FTSE All Share ESG Climate UCITS ETF Acc 4.70% -0.79% -1.02% - -
Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF Acc 0.00% - - - -
Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF Acc 7.83% -0.53% -3.63% - -
Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF Acc 6.73% 4.97% -2.76% - -
Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF Acc 10.78% 4.95% 0.59% - -
Invesco MSCI World ESG Climate Paris Aligned UCITS ETF Acc 8.77% 2.45% -1.18% - -
iShares S&P 500 Paris-Aligned Climate UCITS ETF USD (Dist) 9.60% - - - -
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - Dist 9.34% 4.02% -0.75% - -
SPDR MSCI ACWI Climate Paris Aligned UCITS ETF Acc USD 7.03% 2.01% - - -
SPDR MSCI Emerging Markets Climate Paris Aligned UCITS ETF Acc USD - - - - -
SPDR MSCI Europe Climate Paris Aligned UCITS ETF Acc EUR 7.21% -0.69% - - -
SPDR MSCI USA Climate Paris Aligned UCITS ETF Acc USD 10.39% 5.08% - - -
SPDR MSCI World Climate Paris Aligned UCITS ETF Acc USD 8.40% 2.38% - - -
WisdomTree Recycling Decarbonisation UCITS ETF USD Acc 13.88% 2.54% - - -
Xtrackers EMU Net Zero Pathway Paris Aligned UCITS ETF 1C 5.77% -1.23% - - -
Xtrackers World Net Zero Pathway Paris Aligned UCITS ETF 1C 7.46% 1.95% - - -
ETF   2022
in %
2021
in %
2020
in %
2019
in %
2018
in %
Invesco FTSE All Share ESG Climate UCITS ETF Acc -1.58% - - - -
Invesco FTSE All Share ESG Climate UCITS ETF Dist -1.59% - - - -
FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF -3.09% - - - -
FlexShares Developed Markets High Dividend Climate ESG UCITS ETF -3.49% - - - -
JPMorgan Carbon Transition Global Equity UCITS ETF USD (acc) -4.71% 25.18% - - -
Lyxor MSCI USA ESG Broad CTB (DR) UCITS ETF - Dist -5.22% 27.37% 17.28% 27.03% 0.82%
Franklin S&P 500 Paris Aligned Climate UCITS ETF -6.45% 32.81% - - -
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - Acc -6.49% 32.54% - - -
Lyxor Net Zero 2050 S&P 500 Climate PAB (DR) UCITS ETF - Dist -6.54% - - - -
HSBC MSCI USA Climate Paris Aligned UCITS ETF USD Acc -6.65% - - - -
Amundi MSCI World Climate Transition CTB UCITS ETF DR USD (C) -6.72% 24.38% 13.89% 24.96% 3.35%
Lyxor MSCI World Climate Change (DR) UCITS ETF - Acc -6.79% 24.44% - - -
HSBC MSCI World Climate Paris Aligned UCITS ETF -7.04% - - - -
Amundi MSCI World Climate Paris Aligned PAB UCITS ETF DR - USD (C) -7.08% 24.28% - - -
Amundi Index MSCI Europe ESG Broad CTB UCITS ETF DR EUR (C) -7.45% 17.13% 2.24% 20.11% -9.66%
Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF -7.62% 15.83% - - -
HANetf iClima Global Decarbonisation Enablers UCITS ETF -7.68% 8.32% - - -
Rize Environmental Impact 100 UCITS ETF -7.77% - - - -
Lyxor MSCI USA ESG Climate Transition CTB (DR) UCITS ETF - Acc -7.89% 28.12% - - -
Lyxor Net Zero 2050 S&P World Climate PAB (DR) UCITS ETF - Acc -8.47% 25.30% - - -
Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF Acc -8.63% - - - -
HSBC MSCI Europe Climate Paris Aligned UCITS ETF EUR Acc -8.86% - - - -
Lyxor MSCI Europe ESG Climate Transition CTB (DR) UCITS ETF - Acc -9.14% 17.36% - - -
Lyxor MSCI EM ESG Climate Transition CTB UCITS ETF - Acc -9.20% -1.07% - - -
Invesco MSCI World ESG Climate Paris Aligned UCITS ETF Acc -9.21% - - - -
Lyxor Net Zero 2050 S&P Europe Climate PAB (DR) UCITS ETF - Acc -9.26% 17.31% - - -
UBS ETF (LU) MSCI China ESG Universal Low Carbon Select UCITS ETF (USD) A-dis -9.64% -17.10% 26.21% - -
Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF Acc -11.00% - - - -
Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF Acc -11.45% - - - -
HSBC MSCI Japan Climate Paris Aligned UCITS ETF -12.25% - - - -
Lyxor MSCI EMU ESG Broad CTB (DR) UCITS ETF Dist -12.90% 15.17% 6.29% 20.52% -11.43%
Lyxor Net Zero 2050 S&P Eurozone Climate PAB (DR) UCITS ETF - Acc -14.91% 17.04% - - -
Franklin MSCI China Paris Aligned Climate UCITS ETF - - - - -
HSBC MSCI AC Asia Pacific ex Japan Climate Paris Aligned UCITS ETF - - - - -
HSBC MSCI Emerging Markets Climate Paris Aligned UCITS ETF - - - - -
Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF Acc - - - - -
iShares S&P 500 Paris-Aligned Climate UCITS ETF USD (Dist) - - - - -
SPDR MSCI ACWI Climate Paris Aligned UCITS ETF Acc USD - - - - -
SPDR MSCI Emerging Markets Climate Paris Aligned UCITS ETF Acc USD - - - - -
SPDR MSCI Europe Climate Paris Aligned UCITS ETF Acc EUR - - - - -
SPDR MSCI USA Climate Paris Aligned UCITS ETF Acc USD - - - - -
SPDR MSCI World Climate Paris Aligned UCITS ETF Acc USD - - - - -
WisdomTree Recycling Decarbonisation UCITS ETF USD Acc - - - - -
Xtrackers EMU Net Zero Pathway Paris Aligned UCITS ETF 1C - - - - -
Xtrackers World Net Zero Pathway Paris Aligned UCITS ETF 1C - - - - -

Source: justETF.com; As of 31/07/2022; Calculations in GBP including dividends