ESGD vs VYM
iShares ESG Aware MSCI EAFE ETF vs Vanguard High Dividend Yield ETF
Which is better, ESGD or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. ESGD led over 1Y, VYM over 3Y, 5Y and the full window. ESGD is less concentrated, with 14.0% of the fund in its ten largest positions against 25.9%.
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 | ESGD | VYM |
|---|---|---|
| Expense Ratio | 0.20% | 0.04%Best |
| AUM | $12.2B | $81.6B |
| Dividend Yield | 3.25% | 2.24% |
| Holdings | 378 | 613 |
| YTD Return | +13.43% | +14.82%Best |
| 1Y Return | +22.31%Best | +20.84% |
| 3Y Return (annualized) | +18.40% | +18.64%Best |
| 5Y Return (annualized) | +8.72% | +12.28%Best |
| Volatility (annualized) | 14.8% | 14.1%Best |
| Max Drawdown | -36.3% | -35.7%Best |
| $10,000 over 5 years | $15,190 | $17,845Best |
| Top 10 Weight | 14.0%Best | 25.9% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jun 28, 2016 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jun 30, 2016 to Sep 4, 2026 (10.2 years).
ESGD 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 10.2 years both funds cover.
ESGD vs VYM Performance
iShares ESG Aware MSCI EAFE ETF (ESGD) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year ESGD returned +22.31% while VYM returned +20.84%. Year to date, ESGD is up 13.43% versus a gain of 14.82% for VYM.
Over three years, ESGD compounded at +18.40% per year against +18.64% for VYM; over five years the annualized figures are +8.72% and +12.28% respectively. Across the full 10-year window we track, VYM has the edge at +10.23% annualized vs +8.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESGD has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 14.1% 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 -36.3% for ESGD 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESGD charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, ESGD currently yields 3.25% against 2.24% for VYM.
Holdings Overlap
0.5% of ESGD's money is in holdings VYM also owns. 1.3% of VYM's money is in holdings ESGD also owns.
VYM and ESGD share little of their money.
2 positions in common, counted across the 355 positions we hold weights for in ESGD and 603 in VYM, against full books of 378 and 613.
What only one of them owns
Our book lists 569 positions for VYM that do not appear in our book for ESGD (96.1% of the fund), and 11 for ESGD that do not appear in VYM (4.2%).
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.
You are not choosing between two funds in isolation.
Whichever of ESGD and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ESGD or VYM?
ESGD has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, ESGD or VYM?
Over the past year ESGD returned +22.31% vs +20.84% for VYM, so ESGD leads on 1-year performance. Over the longest common window we track (10 years), ESGD annualized +8.97% vs +10.23% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESGD or VYM?
ESGD has been the more volatile fund at 14.8% annualized versus 14.1% for VYM. Worst drawdown: ESGD -36.3% vs VYM -35.7%.
Should I hold both ESGD and VYM?
ESGD and VYM have a monthly-return correlation of 0.83, 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 ESGD and VYM?
1.3% of VYM's money is in holdings ESGD also owns. 1.3% of VYM's is in holdings ESGD also owns. They hold 2 positions in common, counted across the 355 positions we hold weights for in ESGD and 603 in VYM.
Which pays a higher dividend, ESGD or VYM?
ESGD yields 3.25% while VYM yields 2.24%, so ESGD currently pays the higher dividend yield.
Is VYM better than ESGD?
VYM has a lower expense ratio. ESGD led over 1Y, VYM over 3Y, 5Y and the full window. ESGD is less concentrated, with 14.0% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.