Sustainable Bottom Line: The top ten firms managing 502 sustainable funds offer committed investors a sound starting point for evaluating and selecting sustainable investment candidates.
Notes of Explanation: Data as of June 30, 2026. Investment management firms listed in order of $US AUM as of June 30, 2026 attributable to dedicated sustainable mutual funds and ETFs. Sources: Morningstar and Sustainable Research and Analysis LLC.
Observations:
• The top 10 investment management firms offering dedicated sustainable mutual funds and ETFs as of June 30, 2026, managed $303.7 billion in assets across some 502 mutual funds/share classes and ETFs, up from $274.1 billion at year-end 2025. The same firms accounted for 54% of the sustainable funds segment’s assets as of June, just about at the same share level recorded at year-end 2025.
• The funds available via the top 10 firms cover six asset classes, including commodities, international equity, money market, municipal bonds, taxable bond and US equities as well as a broad range of investment categories and themes. About 58% of the assets managed by the top 10 firms are attributable to index tracking funds.
• Overall, the ranks of the top six firms didn’t change during the six-month interval. The six firms include BlackRock, Vanguard, Calvert, Parnassus, Nuveen and Dimensional Fund Advisors. These six firms attracted about two-thirds of the net inflows attributable to the top 10 list of fund firms.
• Two firms graduated to the ranks of the top 10 fund firms, including Fidelity Management & Research that moved into the 9th position and First Trust which now ranks 7th among the top 10 firms. Offering just six thematic ETFs, First Trust is unlike the other nine top 10 firms in that its offerings consist almost entirely of thematic index tracking focused (non-diversified) funds* versus a broader set of investment product offerings by the other nine firms. First Trust gained $7.2 billion in assets during the first six months of the year, largely on the strength of the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID). The fund, which was up 25.4% during this interval and 39% over the trailing 12 months, gained $6.8 billion in assets. At the same time, Fidelity, which now offers 196 funds/share classes, added about $2.0 billion for a gain of 17%.
• Dropping out of the top 10 firms lineup as of year-end 2025 were two firms. The first is Franklin Templeton Investments that ranked seventh but fell to 14th place as its sustainable assets under management declined by $5.3 billion due, in large part, to the liquidation of funds and fund re-brandings. Impax Asset Management, a firm that ranked 10th at the end of 2025, dropped to 11th place.
• BlackRock, which just announced that its assets under management hit a historic level of $15 trillion, leads in managing labeled sustainable fund assets. At $82.3 billion, mostly managed in iShares ETFs, the firm controls 27.1% of the segment’s assets. Vanguard remains in the number two position with $51.0 billion in assets and a market share of 16.8%.
• The list of the top 10 firms offers sustainable investors a sound starting point for evaluating and selecting dedicated sustainable index funds, in particular broad-based funds that emphasize negative/positive screening and exclusionary strategies, and, to a somewhat lesser extent, actively managed portfolios.
*Of the firm’s six sustainable funds, only the $26.2 million First Trust EIP Power Solutions ETF is an actively managed diversified fund.
