ESGD vs VOO

Quick Verdict

VOO has a lower expense ratio. ESGD delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: ESGDMore Diversified: VOO

Side-by-Side Comparison

MetricESGDVOOWinner
Expense Ratio0.20%0.03%
AUM$11.7B$979.0B
Dividend Yield3.33%1.09%
Holdings379509
YTD Return+13.94%+14.48%
1Y Return+22.38%+22.02%
3Y Return (annualized)+18.10%+21.80%
5Y Return (annualized)+9.00%+13.36%
Volatility (annualized)14.9%14.2%
Max Drawdown-36.3%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJun 28, 2016Sep 7, 2010

ESGD vs VOO Performance

iShares ESG Aware MSCI EAFE ETF (ESGD) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year ESGD returned +22.38% while VOO returned +22.02%. Year to date, ESGD is up 13.94% versus a gain of 14.48% for VOO.

Over three years, ESGD compounded at +18.10% per year against +21.80% for VOO; over five years the annualized figures are +9.00% and +13.36% respectively. Across the full 10-year window we track, VOO has the edge at +13.61% annualized vs +9.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ESGD has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 14.2% for VOO. 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 -36.3% for ESGD and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ESGD charges 0.20% per year while VOO charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, ESGD currently yields 3.33% against 1.09% for VOO.

Holdings Overlap

0.4%overlap

ESGD and VOO share 2 holdings out of 855 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ESGDWeight in VOODifference
ROP1.16%0.05%1.11%
MRK0.36%0.49%0.13%

Frequently Asked Questions

Which is cheaper, ESGD or VOO?

ESGD has an expense ratio of 0.20% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, ESGD or VOO?

Over the past year ESGD returned +22.38% vs +22.02% for VOO, so ESGD leads on 1-year performance. Over the longest common window we track (10 years), ESGD annualized +9.07% vs +13.61% for VOO. Past performance does not guarantee future results.

Which is riskier, ESGD or VOO?

ESGD has been the more volatile fund at 14.9% annualized versus 14.2% for VOO. Worst drawdown: ESGD -36.3% vs VOO -34.3%.

Should I hold both ESGD and VOO?

ESGD and VOO have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ESGD and VOO?

ESGD and VOO share 2 common holdings with a 0.4% weight overlap. Combined, they hold 855 unique securities.

Which pays a higher dividend, ESGD or VOO?

ESGD yields 3.33% while VOO yields 1.09%, so ESGD currently pays the higher dividend yield.

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