ESG vs VYM
Northern Trust STOXX US ESG Select ETF vs Vanguard High Dividend Yield ETF
Which is better, ESG or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. ESG led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 42.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ESG | VYM |
|---|---|---|
| Expense Ratio | 0.32% | 0.04%Best |
| AUM | $136M | $78.9B |
| Dividend Yield | 0.84% | 2.37% |
| Holdings | 253 | 608 |
| YTD Return | +14.22%Best | +11.83% |
| 1Y Return | +17.82%Best | +15.96% |
| 3Y Return (annualized) | +19.89%Best | +18.60% |
| 5Y Return (annualized) | +11.86%Best | +11.51% |
| Volatility (annualized) | 17.4% | 14.2%Best |
| Max Drawdown | -32.5%Best | -35.7% |
| $10,000 over 5 years | $17,514Best | $17,241 |
| Top 10 Weight | 42.4% | 25.8%Best |
| Fund Family | Northern Trust Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jul 13, 2016 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jul 14, 2016 to Oct 14, 2026 (10.3 years).
ESG vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.3 years both funds cover.
ESG vs VYM Performance
Northern Trust STOXX US ESG Select ETF (ESG) is an ETF from Northern Trust Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year ESG returned +17.82% while VYM returned +15.96%. Year to date, ESG is up 14.22% versus a gain of 11.83% for VYM.
Over three years, ESG compounded at +19.89% per year against +18.60% for VYM; over five years the annualized figures are +11.86% and +11.51% respectively. Across the full 10-year window we track, ESG has the edge at +14.70% annualized vs +9.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESG has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 14.2% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -32.5% for ESG and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESG charges 0.32% per year while VYM charges 0.04%. On a $10,000 position that is $32 vs $4 annually, a gap of $28 per year that compounds over a long holding period. On income, ESG currently yields 0.84% against 2.37% for VYM.
Holdings Overlap
42.9% of ESG's money is in holdings VYM also owns. 54.6% of VYM's money is in holdings ESG also owns.
The two portfolios partly overlap.
116 positions in common, counted across the 249 positions we hold weights for in ESG and 602 in VYM, against full books of 253 and 608.
What only one of them owns
Our book lists 459 positions for VYM that do not appear in our book for ESG (43.5% of the fund), and 121 for ESG that do not appear in VYM (53.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ESG | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 5.08% | 6.94% | 1.86% |
| JPMJpmorgan Chase | 3.85% | 3.83% | 0.02% |
| XOMExxonmobil Corp. | 2.97% | 2.70% | 0.27% |
| JNJJohnson & Johnson - Common | 2.74% | 2.58% | 0.16% |
| MRKMerck & Company Inc | 1.55% | 1.47% | 0.08% |
| BACBank of America Corp.: Financials | 1.28% | 1.65% | 0.37% |
| ABBVAbbvie Inc. | 1.05% | 1.83% | 0.78% |
| PGProcter & Gamble Company | 1.51% | 1.36% | 0.15% |
| KOCoca Cola Co. | 1.47% | 1.39% | 0.08% |
| CATCaterpillar, Inc. | 1.10% | 1.46% | 0.36% |
54.6% of VYM is already inside ESG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, ESG or VYM?
ESG has an expense ratio of 0.32% while VYM charges 0.04%. VYM is the cheaper option, by $28 a year on a $10,000 investment.
Which performed better, ESG or VYM?
Over the past year ESG returned +17.82% vs +15.96% for VYM, so ESG leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +14.70% vs +9.58% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESG or VYM?
ESG has been the more volatile fund at 17.4% annualized versus 14.2% for VYM. Worst drawdown: ESG -32.5% vs VYM -35.7%.
Should I hold both ESG and VYM?
ESG and VYM have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ESG and VYM?
54.6% of VYM's money is in holdings ESG also owns. 54.6% of VYM's is in holdings ESG also owns. They hold 116 positions in common, counted across the 249 positions we hold weights for in ESG and 602 in VYM.
Which pays a higher dividend, ESG or VYM?
ESG yields 0.84% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than ESG?
VYM has a lower expense ratio. ESG led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 42.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.