ESGG vs SPY
FlexShares STOXX Global ESG Select Index Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. ESGG delivered stronger 1-year returns. ESGG offers more diversification with 729 holdings.
Side-by-Side Comparison
| Metric | ESGG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.42% | 0.09% | |
| AUM | $116M | $821.1B | |
| Dividend Yield | 1.29% | 1.01% | |
| Holdings | 729 | 505 | |
| YTD Return | +17.80% | +14.24% | |
| 1Y Return | +25.88% | +21.71% | |
| 3Y Return (annualized) | +21.83% | +22.10% | |
| 5Y Return (annualized) | +12.41% | +13.21% | |
| Volatility (annualized) | 18.2% | 15.3% | |
| Max Drawdown | -32.3% | -56.5% | |
| Fund Family | Flexshares Trust | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2016 | Jan 22, 1993 |
ESGG vs SPY Performance
FlexShares STOXX Global ESG Select Index Fund (ESGG) is a ETF from Flexshares Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ESGG returned +25.88% while SPY returned +21.71%. Year to date, ESGG is up 17.80% versus a gain of 14.24% for SPY.
Over three years, ESGG compounded at +21.83% per year against +22.10% for SPY; over five years the annualized figures are +12.41% and +13.21% respectively. Across the full 10-year window we track, ESGG has the edge at +14.07% annualized vs +8.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESGG has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 15.3% for SPY. 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 -32.3% for ESGG and -56.5% for SPY. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESGG charges 0.42% per year while SPY charges 0.09%. On a $10,000 position that is $42 vs $9 annually, a gap of $33 per year that compounds over a long holding period. On income, ESGG currently yields 1.29% against 1.01% for SPY.
Holdings Overlap
ESGG and SPY share 104 holdings out of 1076 unique holdings combined, representing a 39.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ESGG or SPY?
ESGG has an expense ratio of 0.42% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, ESGG or SPY?
Over the past year ESGG returned +25.88% vs +21.71% for SPY, so ESGG leads on 1-year performance. Over the longest common window we track (10 years), ESGG annualized +14.07% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, ESGG or SPY?
ESGG has been the more volatile fund at 18.2% annualized versus 15.3% for SPY. Worst drawdown: ESGG -32.3% vs SPY -56.5%.
Should I hold both ESGG and SPY?
ESGG and SPY have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESGG and SPY?
ESGG and SPY share 104 common holdings with a 39.2% weight overlap. Combined, they hold 1076 unique securities.
Which pays a higher dividend, ESGG or SPY?
ESGG yields 1.29% while SPY yields 1.01%, so ESGG currently pays the higher dividend yield.
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