ESGE vs VXUS

ESGE vs VXUS

Which is better, ESGE or VXUS?

Each has led over a different period.

VXUS has a lower expense ratio. ESGE led over 1Y, 3Y and the full window, VXUS over 5Y. The two have moved almost in lockstep, correlation 0.90.

Lower Fees: VXUSHigher Returns: split

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

MetricESGEVXUS
Expense Ratio0.25%0.05%Best
AUM$6.9B$158.1B
Dividend Yield2.23%2.59%
Holdings3158,747
YTD Return+23.13%Best+16.15%
1Y Return+40.60%Best+27.58%
3Y Return (annualized)+24.57%Best+20.48%
5Y Return (annualized)+7.77%+9.09%Best
Volatility (annualized)17.1%14.8%Best
Max Drawdown-41.1%-39.9%Best
$10,000 over 5 years$14,537$15,450Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionJun 28, 2016Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jul 20, 2016 to Sep 4, 2026 (10.1 years).

ESGE 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 10.1 years both funds cover.

ESGE vs VXUS Performance

iShares ESG Aware MSCI EM ETF (ESGE) 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 ESGE returned +40.60% while VXUS returned +27.58%. Year to date, ESGE is up 23.13% versus a gain of 16.15% for VXUS.

Over three years, ESGE compounded at +24.57% per year against +20.48% for VXUS; over five years the annualized figures are +7.77% and +9.09% respectively. Across the full 10-year window we track, ESGE has the edge at +8.77% annualized vs +8.50%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ESGE has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 14.8% 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 -41.1% for ESGE 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

ESGE charges 0.25% per year while VXUS charges 0.05%. On a $10,000 position that is $25 vs $5 annually, a gap of $20 per year that compounds over a long holding period. On income, ESGE currently yields 2.23% against 2.59% for VXUS.

Holdings Overlap

ESGE already in VXUS50.1%

At least 50.1% of ESGE's money is in holdings VXUS also owns.

Stated as a floor: for VXUS, our book for it covers 87.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

The two portfolios partly overlap.

174 positions in common, counted across the 285 positions we hold weights for in ESGE and 8,092 in VXUS, against full books of 315 and 8,747.

Top Shared Holdings

StockWeight in ESGEWeight in VXUSDifference
000660:KRSk Hynix5.46%2.17%3.29%
9988:HKAlibaba Group Holding Limited Ordinary Shares1.98%0.49%1.49%
2454:TWMediatek, Inc.1.43%0.44%0.99%
2308:TWDelta Electronics0.97%0.27%0.70%
2412:TWChunghwa Telecom Co. Ltd.1.05%0.04%1.01%
992:HKLenovo Group Ltd0.94%0.05%0.89%
1120:SAAl Rajhi Bank0.81%0.11%0.70%
402340:KRSk Square Co., Ltd.0.69%0.22%0.47%
2317:TWHon Hai Precision Industry Co Ltd Ord Twd100.63%0.22%0.41%
2882:TWCathay Financial Holdings Co. Ltd.0.76%0.07%0.69%

50.1% of ESGE is already inside VXUS.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

ESGEVXUS

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Frequently Asked Questions

Which is cheaper, ESGE or VXUS?

ESGE has an expense ratio of 0.25% while VXUS charges 0.05%. VXUS is the cheaper option, by $20 a year on a $10,000 investment.

Which performed better, ESGE or VXUS?

Over the past year ESGE returned +40.60% vs +27.58% for VXUS, so ESGE leads on 1-year performance. Over the longest common window we track (10 years), ESGE annualized +8.77% vs +8.50% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ESGE or VXUS?

ESGE has been the more volatile fund at 17.1% annualized versus 14.8% for VXUS. Worst drawdown: ESGE -41.1% vs VXUS -39.9%.

Should I hold both ESGE and VXUS?

ESGE and VXUS have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between ESGE and VXUS?

At least 50.1% of ESGE's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 174 positions in common, counted across the 285 positions we hold weights for in ESGE and 8,092 in VXUS.

Which pays a higher dividend, ESGE or VXUS?

ESGE yields 2.23% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.

Is VXUS better than ESGE?

VXUS has a lower expense ratio. ESGE led over 1Y, 3Y and the full window, VXUS over 5Y. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.