7 ESG ETFs to Buy for Responsible Profits

Investors are rapidly moving toward investing with environmental, social and corporate-governance (ESG) qualities in mind. Assets in ESG ETFs and other exchange-traded products (ETPs) grew by $7.6 billion, or 29.5%, in 2018. That growth rate is several times higher than the 4.6% increase in overall ETF/ETP assets.

Mass shootings in Dayton, Ohio, and El Paso and Odessa, Texas, are among the various incidents that kept the spotlight on ESG investing this year. Many investors found themselves double-checking whether their funds were gun-free or not. And eliminating gun companies (and other ESG-unfriendly stocks) isn't as easy as you might think.

For instance, Canada's largest pension plan owns shares of gunmaker Sturm Ruger (RGR), Smith & Wesson parent American Outdoors Brands (AOBC) and ammunition manufacturer Olin (OLN). It's not a lot, mind you - its C$400 billion portfolio only invests a mere C$37 million in gunmakers - but it's still enough to concern Canadian ESG investors.

"I want to make sure that my money isn't doing harm," Tina Lopes, a mother of three, told the CBC. "I don't want to profit from companies, manufacturers or industries that could potentially harm people."

That kind of sentiment is what's driving experts to estimate that ESG assets will explode from half of assets managed by global funds in 2016, to two-thirds by 2020. ETFs will be