A hand smashes a piggy bank with a hammer, symbolizing animal cruelty for money @ YouTube | usveganclimateetf

Most ESG and S&P 500 ETFs or indexes don’t screen for cruelty-free investing principles, but there's one now for investors who care enough to do so.

The Vegan Climate ETF (Ticker: VEGN) by Beyond Investing offers investors the opportunity to invest in the stock market through a low-cost index fund or exchange-traded fund like the S&P 500, but excluding companies that exploit animals.

The fund tracks the U.S. Vegan Climate Index (Ticker: VEGAN), which screens large-cap U.S. companies for Environmental, Social, and Governance (ESG) considerations, primarily avoiding animal harm and exploitation, as well as fossil fuels, environmental damage, and human rights violations.

In one press article, GreenMoney even called the Index/ETF a more “hardcore” ESG approach in investing. With zero animal exploitation and zero fossil fuels, it represents a portfolio of stocks with lower greenhouse gas emissions, waste generation, and freshwater use than the S&P 500 Index.

U.S. Vegan Climate Index (Ticker: VEGAN)

From its inception on June 6, 2018, through June 30, 2025, the U.S. Vegan Climate ETF holds 252 companies, weighted by market capitalization.

The other half of the 500 companies have been removed from the ETF for their involvement in animal testing, animal-derived products, animal farming, or animals used in sports or entertainment.

Companies that burn fossil fuels for energy and companies with a significant carbon footprint or a history of environmental destruction are also removed.

Tobacco, military, and defense companies, including companies tied to human rights abuses, are also eliminated from the list.

Top 10 Holdings

Top active and popular holdings in the ETF include NVIDIA (NVDA), ALPHABET a.k.a. GOOGLE (GOOGL), APPLE (AAPL), and BROADCOM (AVGO), among others. 

Companies may be periodically added to or removed from the holdings list based on the extent to which their current practices align with VEGN’s ethical principles.

The fund holds $133,377,390 in net assets as of Dec 7, 2025, with the market price of $61 per share. The expense ratio is 0.60%, which is considered high, but that's quite normal for young ETFs. It lowers as net assets increase. I got in early and started buying its shares when it was about $27 per share 3 years ago, and the investment returns and performance are as good, if not better, than the S&P 500 ETFs.

VEGN Top 10 Constituents

The live index price performance between the S&P 500 and the VEGAN index shows similar growth, with the VEGAN index outperforming the S&P 500 most of the time.

A seasoned three-person team is responsible for curating the fund.

VEGAN Live Index Price Performance from 6 June 2018 to June 30, 2025

S&P500 & VEGAN sector comparison

Why VEGN ETF?

The company providing the INDEX and ETF, Beyond Investing LLC, states:

“The VEGN ETF seeks to avoid investing in companies involved in the slaughter, cruelty, and mistreatment of billions of animals each year.” 

It further adds that they will not invest in any company that is reliant on one or more of the following areas:

ANIMALS

• Animal testing
• Animal-derived products, animal farming, and other exploitation activities
• Animals in sport and entertainment
• Research, development, and use of genetically engineered animals

PLANET

• Extraction, refining, or services principally related to the extraction or refining of fossil fuels
• Burning of fossil fuels for energy production
• Other activities that have a significant negative environmental impact (e.g., high carbon intensity activities, high climate change impact, habitat destruction), unless the applicable company undertakes positive initiatives that effectively address those impacts

PEOPLE

• Tobacco products
• Armaments and products specifically designed for military and defense use
• Contributions to the abuse of human rights or a lack of robust, detailed, and independently published policies covering human rights and child/forced labor

By tracking the VEGAN INDEX, the VEGN ETF seeks to invest in companies that offer:

Humane approach — Seeking to provide market-capitalization-weighted exposure to U.S. companies that satisfy its rigorous ESG standards, limiting its largest holdings to 5% of the total portfolio.

Animal-friendly — Aiming to exclude companies that harm animals, screening out companies involved in animal testing, animal-derived products, and animals in sports or entertainment.

Good for the environment and people — Screening out companies involved in fossil fuels and their use in energy production, and excluding companies involved in military and defense, and human rights abuses.

VEGAN INDEX & VEGN ETF

VEGAN INDEX

The VEGAN INDEX’s investment strategy follows a passive rules-based approach that aims to steer clear of companies directly involved in causing animal suffering, environmental damage, and climate change.

VEGAN INDEX is independently calculated and published in real-time under its ticker, VEGAN, on Bloomberg and Reuters terminals and reported daily on the Solactive website.

VEGN ETF

The VEGN ETF, which tracks the VEGAN INDEX, is listed on the New York Stock Exchange (NYSE) under the ticker VEGN.

For more detailed information about the VEGAN INDEX & VEGN ETF, how the business sectors compare to the S&P 500, the online brokers that trade them, Beyond Investing’s ethical stance, the latest news, listing updates, and more, refer to the links below:

What is the World’s First ‘Vegan ETF’?

Beyond Investing: U.S. Vegan Climate ETF (Ticker: VEGN)

Beyond Investing: U.S. Vegan Climate Index (Ticker: VEGAN)

Cruelty-Free Investing company listings

The information in the links above demonstrates that investing in broad-based markets while adhering to animal- and environmentally-friendly principles is also possible while earning similar returns, if not higher.

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Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their own due diligence before making major financial decisions