ESG funds invest in companies prioritizing environmental, social, and governance factors while aiming for industry-leading performance. Despite tech giants' dominance in S&P 500 ETFs, they are also heavily invested in ESG funds due to the sector's perceived "cleanliness." ESG funds avoid excluding key sectors like energy, acknowledging their economic significance. Investor interest in ESG funds continues to rise, particularly among those seeking sustainable and long-term investments.
