ESG funds are beating the market and raking in cash. Here are the top stocks they own

Morgan Stanley recently said that ESG will be the defining acronym of the next decade, likely to dominate financial markets during the 2020s.
Alicia Llop | Getty Images

(This story is for CNBC PRO subscribers only.)

Socially responsible funds are attracting a record amount of cash as ESG investing grows in popularity, and companies that focus on environmental, social and governance factors are outperforming their peers, according to Bank of America.

Scanning ESG-focused funds, the firm found that the top 50 most commonly held stocks outperformed the bottom 50 stocks by 22 percentage points, while noting that these funds have seen 21 straight weeks of inflows.

More In Investing trends

CNBC ProStocks should be fine when the Fed starts raising rates next year, history shows
CNBC ProJefferies says the metaverse will be 'biggest disruption humans have ever experienced.' How to play it
CNBC ProHere are Wall Street's top e-commerce picks as FedEx sees 100 million more holiday packages than '19