Integrating environmental, social, and governance (ESG) considerations into investment decisions has become increasingly popular. In 2020, global assets under management incorporating ESG factors reached $35 trillion, a 55% increase from 2016. Given its growing relevance within the financial and academic community, this paper analyzes the historical evolution of ESG Investing and its most recent developments. It describes the extent to which ESG considerations affect financial performance and outlines the main strategies used by investors when incorporating ESG factors into their financial decisions. This study also introduces Islamic finance, and sheds a light on the main differences, but also similarities, with ESG Investing through a novel comparative approach. Finally, we offer a summary of the main research findings on the performance of socially aware mutual funds through a comprehensive literature review of more than 40 papers (1993–2022), which we hope it will be of practical assistance to scholars and industry professionals looking to develop or refine their investment strategies.