ESG vs VTI
Northern Trust STOXX US ESG Select ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, ESG or VTI?
Each has led over a different period.
VTI has a lower expense ratio. ESG led over 1Y and the full window, VTI over 3Y and 5Y. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 41.2%.
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 | VTI |
|---|---|---|
| Expense Ratio | 0.32% | 0.03%Best |
| AUM | $136M | $666.9B |
| Dividend Yield | 0.84% | 1.03% |
| Holdings | 254 | 3,543 |
| YTD Return | +14.99%Best | +13.60% |
| 1Y Return | +19.41%Best | +18.17% |
| 3Y Return (annualized) | +21.02% | +23.04%Best |
| 5Y Return (annualized) | +11.95% | +12.14%Best |
| Volatility (annualized) | 17.4% | 15.7%Best |
| Max Drawdown | -32.5%Best | -35.0% |
| $10,000 over 5 years | $17,584 | $17,734Best |
| Top 10 Weight | 41.2% | 33.3%Best |
| Fund Family | Northern Trust Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jul 13, 2016 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Jul 14, 2016 to Sep 25, 2026 (10.2 years).
ESG vs VTI 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 10.2 years both funds cover.
ESG vs VTI Performance
Northern Trust STOXX US ESG Select ETF (ESG) is an ETF from Northern Trust Asset Management and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year ESG returned +19.41% while VTI returned +18.17%. Year to date, ESG is up 14.99% versus a gain of 13.60% for VTI.
Over three years, ESG compounded at +21.02% per year against +23.04% for VTI; over five years the annualized figures are +11.95% and +12.14% respectively. Across the full 10-year window we track, ESG has the edge at +14.85% annualized vs +13.70%.
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 15.7% for VTI. 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 -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESG charges 0.32% per year while VTI charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, ESG currently yields 0.84% against 1.03% for VTI.
Holdings Overlap
96.6% of ESG's money is in holdings VTI also owns. 58.5% of VTI's money is in holdings ESG also owns.
Most of ESG is already inside VTI. Owning both mostly buys the same companies twice.
239 positions in common, counted across the 250 positions we hold weights for in ESG and 3,463 in VTI, against full books of 254 and 3,543.
What only one of them owns
Our book lists 917 positions for VTI that do not appear in our book for ESG (39.3% of the fund), and 5 for ESG that do not appear in VTI (0.7%).
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 VTI | Difference |
|---|---|---|---|
| NVDANvidia Corp | 5.07% | 6.40% | 1.33% |
| AAPLApple, Inc | 5.04% | 6.29% | 1.25% |
| MSFTMicrosoft Corp | 6.12% | 4.79% | 1.33% |
| AMZNAmazon.Com Inc | 3.44% | 3.65% | 0.21% |
| AVGOBroadcom Inc | 4.52% | 2.56% | 1.96% |
| MUMicron Technology, Inc. | 4.35% | 1.29% | 3.06% |
| JPMJpmorgan Chase | 3.85% | 1.31% | 2.54% |
| LLYEli Lilly & Co. | 3.30% | 1.35% | 1.95% |
| BRK.BBerkshire Hathaway Inc Brk/B Us Equity | 2.85% | 1.28% | 1.57% |
| XOMExxon Mobil Corp. | 2.68% | 0.89% | 1.79% |
96.6% of ESG is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ESG or VTI?
ESG has an expense ratio of 0.32% while VTI charges 0.03%. VTI is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, ESG or VTI?
Over the past year ESG returned +19.41% vs +18.17% for VTI, so ESG leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +14.85% vs +13.70% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESG or VTI?
ESG has been the more volatile fund at 17.4% annualized versus 15.7% for VTI. Worst drawdown: ESG -32.5% vs VTI -35.0%.
Should I hold both ESG and VTI?
ESG and VTI have a monthly-return correlation of 0.88, 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 VTI?
96.6% of ESG's money is in holdings VTI also owns. 58.5% of VTI's is in holdings ESG also owns. They hold 239 positions in common, counted across the 250 positions we hold weights for in ESG and 3,463 in VTI.
Which pays a higher dividend, ESG or VTI?
ESG yields 0.84% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.
Is VTI better than ESG?
VTI has a lower expense ratio. ESG led over 1Y and the full window, VTI over 3Y and 5Y. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 41.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.