Microsoft, Tesla Fuel ESG Gains for 32-Year-Old Fidelity Fund

Hundreds of billions of dollars are pouring into new or conveniently renamed funds billed as good for the environment and society.

But one Fidelity Investments mutual fund that’s been around for more than three decades is among this year’s best-performing sustainability-focused funds, with a 24% return, driven by shares of Microsoft Corp. and Tesla Inc., its top holdings.

The $875 million Fidelity Environment & Alternative Energy Fund, launched in 1989, is designed to focus on water infrastructure, waste and recycling technologies, renewable energy and pollution control.

While its holdings also include renewables giants Vestas Wind Systems A/S and ...