Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricESGDVXUSWinner
Expense Ratio0.20%0.05%
AUM$11.7B$156.5B
Dividend Yield3.33%2.60%
Holdings3798,747
YTD Return+13.84%+14.57%
1Y Return+24.64%+27.82%
3Y Return (annualized)+17.76%+19.27%
5Y Return (annualized)+9.33%+9.28%
Volatility (annualized)14.9%15.1%
Max Drawdown-36.3%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJun 28, 2016Jan 26, 2011

ESGD vs VXUS Performance

iShares ESG Aware MSCI EAFE ETF (ESGD) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year ESGD returned +24.64% while VXUS returned +27.82%. Year to date, ESGD is up 13.84% versus a gain of 14.57% for VXUS.

Over three years, ESGD compounded at +17.76% per year against +19.27% for VXUS; over five years the annualized figures are +9.33% and +9.28% respectively. Across the full 10-year window we track, ESGD has the edge at +9.08% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 14.9% for ESGD. 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 -39.9% for VXUS. 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

ESGD charges 0.20% per year while VXUS charges 0.05%. On a $10,000 position that is $20 vs $5 annually, a gap of $15 per year that compounds over a long holding period. On income, ESGD currently yields 3.33% against 2.60% for VXUS.

Holdings Overlap

25.4%overlap

ESGD and VXUS share 230 holdings out of 7983 unique holdings combined, representing a 25.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ESGDWeight in VXUSDifference
ASML:AS3.52%1.29%2.23%
NOVN:SM1.54%0.73%0.81%
HSBA:LN1.51%0.72%0.79%
AZN:LNProProPro
NESN:SMProProPro
ABBN:SMProProPro
CBA:AUProProPro
SHEL:LNProProPro
8035:JPProProPro
8306:JPProProPro
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Frequently Asked Questions

Which is cheaper, ESGD or VXUS?

ESGD has an expense ratio of 0.20% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, ESGD or VXUS?

Over the past year ESGD returned +24.64% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (10 years), ESGD annualized +9.08% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, ESGD or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 14.9% for ESGD. Worst drawdown: ESGD -36.3% vs VXUS -39.9%.

Should I hold both ESGD and VXUS?

ESGD and VXUS have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between ESGD and VXUS?

ESGD and VXUS share 230 common holdings with a 25.4% weight overlap. Combined, they hold 7983 unique securities.

Which pays a higher dividend, ESGD or VXUS?

ESGD yields 3.33% while VXUS yields 2.60%, so ESGD currently pays the higher dividend yield.

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