ESGE vs VYM

ESGE vs VYM

Which is better, ESGE or VYM?

Large Cap Blend against Large Cap Value.

VYM has a lower expense ratio. ESGE led over 1Y and 3Y, VYM over 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 37.7%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricESGEVYM
Expense Ratio0.25%0.04%Best
AUM$6.9B$81.6B
Dividend Yield2.23%2.24%
Holdings315613
YTD Return+23.13%Best+14.82%
1Y Return+40.60%Best+20.84%
3Y Return (annualized)+24.57%Best+18.64%
5Y Return (annualized)+7.77%+12.28%Best
Volatility (annualized)17.1%14.2%Best
Max Drawdown-41.1%-35.7%Best
$10,000 over 5 years$14,537$17,845Best
Top 10 Weight37.7%25.9%Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionJun 28, 2016Nov 10, 2006

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

ESGE 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 10.1 years both funds cover.

ESGE vs VYM Performance

iShares ESG Aware MSCI EM ETF (ESGE) 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 ESGE returned +40.60% while VYM returned +20.84%. Year to date, ESGE is up 23.13% versus a gain of 14.82% for VYM.

Over three years, ESGE compounded at +24.57% per year against +18.64% for VYM; over five years the annualized figures are +7.77% and +12.28% respectively. Across the full 10-year window we track, VYM has the edge at +9.98% annualized vs +8.77%.

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 14.2% 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 -41.1% for ESGE 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 0.64. They move together some of the time, and apart the rest.

Fees and Cost Over Time

ESGE charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, ESGE currently yields 2.23% against 2.24% for VYM.

Holdings Overlap

ESGE already in VYM0.5%
VYM already in ESGE0.2%

0.5% of ESGE's money is in holdings VYM also owns. 0.2% of VYM's money is in holdings ESGE also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

2 positions in common, counted across the 285 positions we hold weights for in ESGE and 602 in VYM, against full books of 315 and 613.

What only one of them owns

Our book lists 568 positions for VYM that do not appear in our book for ESGE (97.2% of the fund), and 4 for ESGE that do not appear in VYM (0.8%).

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

StockWeight in ESGEWeight in VYMDifference
BAP:BMCredicorp Ltd Common Stock0.36%0.11%0.25%
SCCOSouthern Copper Corp0.11%0.07%0.04%

You are not choosing between two funds in isolation.

Whichever of ESGE and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

ESGEVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, ESGE or VYM?

ESGE has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option, by $21 a year on a $10,000 investment.

Which performed better, ESGE or VYM?

Over the past year ESGE returned +40.60% vs +20.84% for VYM, so ESGE leads on 1-year performance. Over the longest common window we track (10 years), ESGE annualized +8.77% vs +9.98% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ESGE or VYM?

ESGE has been the more volatile fund at 17.1% annualized versus 14.2% for VYM. Worst drawdown: ESGE -41.1% vs VYM -35.7%.

Should I hold both ESGE and VYM?

ESGE and VYM have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, ESGE or VYM?

ESGE yields 2.23% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

Is VYM better than ESGE?

VYM has a lower expense ratio. ESGE led over 1Y and 3Y, VYM over 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 37.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.