ESGU vs VXUS

ESGU vs VXUS

Which is better, ESGU or VXUS?

ESGU has been ahead.

VXUS has a lower expense ratio. ESGU led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VXUSHigher Returns: ESGU

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

MetricESGUVXUS
Expense Ratio0.15%0.05%Best
AUM$18.2B$163.2B
Dividend Yield0.93%2.34%
Holdings2738,844
YTD Return+13.44%Best+10.00%
1Y Return+17.33%Best+17.01%
3Y Return (annualized)+22.02%Best+19.55%
5Y Return (annualized)+11.98%Best+8.55%
Volatility (annualized)15.8%15.1%Best
Max Drawdown-33.9%Best-39.9%
$10,000 over 5 years$17,608Best$15,071
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionDec 1, 2016Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Dec 6, 2016 to Oct 14, 2026 (9.9 years).

ESGU vs VXUS 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 9.9 years both funds cover.

ESGU vs VXUS Performance

iShares ESG Aware MSCI USA ETF (ESGU) is an ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year ESGU returned +17.33% while VXUS returned +17.01%. Year to date, ESGU is up 13.44% versus a gain of 10.00% for VXUS.

Over three years, ESGU compounded at +22.02% per year against +19.55% for VXUS; over five years the annualized figures are +11.98% and +8.55% respectively. Across the full 10-year window we track, ESGU has the edge at +14.35% annualized vs +8.09%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ESGU has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 15.1% for VXUS. 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 -33.9% for ESGU and -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ESGU charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, ESGU currently yields 0.93% against 2.34% for VXUS.

Holdings Overlap

ESGU already in VXUS3.6%

At least 3.6% of ESGU's money is in holdings VXUS also owns.

Stated as a floor: for VXUS, our book for it covers 91.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

ESGU and VXUS share little of their money.

3 positions in common, counted across the 270 positions we hold weights for in ESGU and 8,425 in VXUS, against full books of 273 and 8,844.

Top Shared Holdings

StockWeight in ESGUWeight in VXUSDifference
GOOGAlphabate, Inc Class C3.43%0.00%3.43%
SUNBSunbelt Rentals0.10%0.06%0.04%
SRESempra Common Stock0.09%0.00%0.09%

You are not choosing between two funds in isolation.

Whichever of ESGU and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

ESGUVXUS

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Frequently Asked Questions

Which is cheaper, ESGU or VXUS?

ESGU has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option, by $10 a year on a $10,000 investment.

Which performed better, ESGU or VXUS?

Over the past year ESGU returned +17.33% vs +17.01% for VXUS, so ESGU leads on 1-year performance. Over the longest common window we track (10 years), ESGU annualized +14.35% vs +8.09% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ESGU or VXUS?

ESGU has been the more volatile fund at 15.8% annualized versus 15.1% for VXUS. Worst drawdown: ESGU -33.9% vs VXUS -39.9%.

Should I hold both ESGU and VXUS?

ESGU and VXUS have a monthly-return correlation of 0.84, 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 ESGU and VXUS?

At least 3.6% of ESGU's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 3 positions in common, counted across the 270 positions we hold weights for in ESGU and 8,425 in VXUS.

Which pays a higher dividend, ESGU or VXUS?

ESGU yields 0.93% while VXUS yields 2.34%, so VXUS currently pays the higher dividend yield.

Is VXUS better than ESGU?

VXUS has a lower expense ratio. ESGU led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.