Are index funds investment ethical?

Index funds generally include a subset of the best companies in the market, filtered according to various parameters. However, complying with ethical investing norms is not one of those conditions at present.

However, there are specific sets of index funds that come under the socially responsible category that, at the onset, set out to invest only in companies that comply with ESG (Environment, Social, Government) norms. If you invest in such categories of index funds, you will be investing ethically. If not, then index funds are not ethical.