In quiet fashion, environmental, social, and governance (ESG) ETFs added billions of dollars in fresh assets in late 2025, confirming plenty of advisors and retail investors continue prioritizing sustainable investing while adhering to ESG principles.
Those inflows are noteworthy when considering it was just a couple of years ago that the concept of ESG investing was a thorny political issue. Policymakers have moved onto other things. Combine that with the aforementioned inflows and the stage could be set for renewed focus on ETFs such as the Invesco ESG Nasdaq 100 ETF (QQMG ).
QQMG, which tracks the ESG offshoot of the Nasdaq-100 Index (NDX), gained 22.17% in 2025. This confirms investors don’t have to choose between the virtues of ESG investing and total returns. Time will tell if the ETF can meet or beat that performance this year. Still, it has the ingredients in place to deliver another solid showing in 2026.
Why QQMG Could Be a 2026 Winner
A look under the hood confirms QQMG, which debuted in October 2021, could be a winning ETF this year. It’s sector allocations confirm as much.
“Morningstar’s research finds that the biggest ESG risk is in energy and utilities, with the smallest in technology and real estate,” noted Margaret Giles of the research firm. “A company’s approach to sustainability demonstrates how it anticipates and addresses these long-term risks. Companies that mishandle ESG issues could incur significant economic costs that jeopardize their ability to earn long-term, maintainable profits.”
Good news: QQMG allocates nearly two-thirds of its weight to tech stocks. Meanwhile, it features no exposure to energy stocks and barely any exposure to the utilities sector.
Add to that, several of the names appearing on Morningstar’s list of the best sustainable stocks to own are also members of the QQMG roster. That group includes Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN), which combine for approximately 22% of the ETF’s weight. Pepsico (PEP) is among the other QQMG components appearing on the Morningstar list.
The point is QQMG is positioned to benefit from positive, long-term trends in sustainable investing. That’s exactly the perspective investors should employ with this ETF.
“From that perspective, not all the names in this catalog of low-ESG-risk companies with wide moat ratings can be considered a buy at the moment. Still, for investors interested in managing long-term ESG risks, they’re worth keeping a close eye on,” concluded Giles.
For more news, information, and analysis, visit the ETF Education Content Hub.
