ESGG vs VYM
FlexShares STOXX Global ESG Select Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. ESGG delivered stronger 1-year returns. ESGG offers more diversification with 729 holdings.
Side-by-Side Comparison
| Metric | ESGG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.42% | 0.04% | |
| AUM | $116M | $81.6B | |
| Dividend Yield | 1.29% | 2.24% | |
| Holdings | 729 | 616 | |
| YTD Return | +16.72% | +15.75% | |
| 1Y Return | +24.67% | +23.85% | |
| 3Y Return (annualized) | +21.87% | +19.14% | |
| 5Y Return (annualized) | +12.54% | +12.45% | |
| Volatility (annualized) | 18.2% | 14.6% | |
| Max Drawdown | -32.3% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2016 | Nov 10, 2006 |
ESGG vs VYM Performance
FlexShares STOXX Global ESG Select Index Fund (ESGG) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ESGG returned +24.67% while VYM returned +23.85%. Year to date, ESGG is up 16.72% versus a gain of 15.75% for VYM.
Over three years, ESGG compounded at +21.87% per year against +19.14% for VYM; over five years the annualized figures are +12.54% and +12.45% respectively. Across the full 10-year window we track, ESGG has the edge at +13.95% annualized vs +7.06%. 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 14.6% 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 -32.3% for ESGG and -58.8% for VYM. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESGG charges 0.42% per year while VYM charges 0.04%. On a $10,000 position that is $42 vs $4 annually, a gap of $38 per year that compounds over a long holding period. On income, ESGG currently yields 1.29% against 2.24% for VYM.
Holdings Overlap
ESGG and VYM share 45 holdings out of 1234 unique holdings combined, representing a 23.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ESGG or VYM?
ESGG has an expense ratio of 0.42% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, ESGG or VYM?
Over the past year ESGG returned +24.67% vs +23.85% for VYM, so ESGG leads on 1-year performance. Over the longest common window we track (10 years), ESGG annualized +13.95% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, ESGG or VYM?
ESGG has been the more volatile fund at 18.2% annualized versus 14.6% for VYM. Worst drawdown: ESGG -32.3% vs VYM -58.8%.
Should I hold both ESGG and VYM?
ESGG and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESGG and VYM?
ESGG and VYM share 45 common holdings with a 23.2% weight overlap. Combined, they hold 1234 unique securities.
Which pays a higher dividend, ESGG or VYM?
ESGG yields 1.29% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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