ESGU vs VTI
iShares ESG Aware MSCI USA ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | ESGU | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $18.4B | $666.9B | |
| Dividend Yield | 0.94% | 1.07% | |
| Holdings | 282 | 3,543 | |
| YTD Return | +12.64% | +12.79% | |
| 1Y Return | +20.03% | +20.47% | |
| 3Y Return (annualized) | +21.33% | +21.53% | |
| 5Y Return (annualized) | +11.60% | +11.84% | |
| Volatility (annualized) | 15.9% | 15.3% | |
| Max Drawdown | -33.9% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2016 | May 24, 2001 |
ESGU vs VTI Performance
iShares ESG Aware MSCI USA ETF (ESGU) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year ESGU returned +20.03% while VTI returned +20.47%. Year to date, ESGU is up 12.64% versus a gain of 12.79% for VTI.
Over three years, ESGU compounded at +21.33% per year against +21.53% for VTI; over five years the annualized figures are +11.60% and +11.84% respectively. Across the full 10-year window we track, ESGU has the edge at +14.46% annualized vs +8.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESGU has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 15.3% for VTI. 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 -33.9% for ESGU and -56.6% for VTI. 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 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ESGU charges 0.15% per year while VTI charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, ESGU currently yields 0.94% against 1.07% for VTI.
Holdings Overlap
ESGU and VTI share 258 holdings out of 2798 unique holdings combined, representing a 71.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, ESGU or VTI?
ESGU has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, ESGU or VTI?
Over the past year ESGU returned +20.03% vs +20.47% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (10 years), ESGU annualized +14.46% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, ESGU or VTI?
ESGU has been the more volatile fund at 15.9% annualized versus 15.3% for VTI. Worst drawdown: ESGU -33.9% vs VTI -56.6%.
Should I hold both ESGU and VTI?
ESGU and VTI have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between ESGU and VTI?
ESGU and VTI share 258 common holdings with a 71.7% weight overlap. Combined, they hold 2798 unique securities.
Which pays a higher dividend, ESGU or VTI?
ESGU yields 0.94% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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