ESML vs VOO

ESML vs VOO

Which is better, ESML or VOO?

Small Cap Blend against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. ESML is less concentrated, with 4.5% of the fund in its ten largest positions against 37.6%.

Lower Fees: VOOHigher Returns: VOOLess Concentrated: ESML

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

MetricESMLVOO
Expense Ratio0.17%0.03%Best
AUM$2.8B$997.4B
Dividend Yield0.91%1.04%
Holdings913509
YTD Return+14.07%Best+12.37%
1Y Return+16.60%+16.61%Best
3Y Return (annualized)+16.53%+21.37%Best
5Y Return (annualized)+7.65%+13.49%Best
Volatility (annualized)21.3%16.5%Best
Max Drawdown-42.0%-34.3%Best
$10,000 over 5 years$14,457$18,827Best
Top 10 Weight4.5%Best37.6%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleSmall Cap BlendLarge Cap Blend
InceptionApr 10, 2018Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Apr 12, 2018 to Sep 18, 2026 (8.4 years).

ESML vs VOO 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 8.4 years both funds cover.

ESML vs VOO Performance

iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year ESML returned +16.60% while VOO returned +16.61%. Year to date, ESML is up 14.07% versus a gain of 12.37% for VOO.

Over three years, ESML compounded at +16.53% per year against +21.37% for VOO; over five years the annualized figures are +7.65% and +13.49% respectively. Across the full 8-year window we track, VOO has the edge at +14.38% annualized vs +9.80%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ESML has been the more volatile fund, with annualized monthly volatility of 21.3% compared with 16.5% for VOO. 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 -42.0% for ESML and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ESML charges 0.17% per year while VOO charges 0.03%. On a $10,000 position that is $17 vs $3 annually, a gap of $14 per year that compounds over a long holding period. On income, ESML currently yields 0.91% against 1.04% for VOO.

Holdings Overlap

ESML already in VOO10.5%
VOO already in ESML0.9%

10.5% of ESML's money is in holdings VOO also owns. 0.9% of VOO's money is in holdings ESML also owns.

ESML and VOO share little of their money.

51 positions in common, counted across the 854 positions we hold weights for in ESML and 494 in VOO, against full books of 913 and 509.

What only one of them owns

Our book lists 437 positions for VOO that do not appear in our book for ESML (98.2% of the fund), and 783 for ESML that do not appear in VOO (83.2%).

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 ESMLWeight in VOODifference
MRNAModerna therapeutics0.74%0.03%0.71%
AIZAssurant, Inc.0.62%0.02%0.60%
TRMBTrimble Inc.0.33%0.02%0.31%
IVZInvesco Plc0.32%0.02%0.30%
CLXClorox Co.0.32%0.02%0.30%
FDSFactset Research Systems Inc.0.31%0.01%0.30%
RVTYRevvity Inc0.30%0.02%0.28%
AKAMAkamai Technologies Inc.0.29%0.03%0.26%
DOCHealthpeak Properties Inc0.29%0.02%0.27%
VTRSViatris Inc.0.26%0.03%0.23%

You are not choosing between two funds in isolation.

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

ESMLVOO

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Frequently Asked Questions

Which is cheaper, ESML or VOO?

ESML has an expense ratio of 0.17% while VOO charges 0.03%. VOO is the cheaper option, by $14 a year on a $10,000 investment.

Which performed better, ESML or VOO?

Over the past year ESML returned +16.60% vs +16.61% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (8 years), ESML annualized +9.80% vs +14.38% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ESML or VOO?

ESML has been the more volatile fund at 21.3% annualized versus 16.5% for VOO. Worst drawdown: ESML -42.0% vs VOO -34.3%.

Should I hold both ESML and VOO?

ESML and VOO have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between ESML and VOO?

10.5% of ESML's money is in holdings VOO also owns. 0.9% of VOO's is in holdings ESML also owns. They hold 51 positions in common, counted across the 854 positions we hold weights for in ESML and 494 in VOO.

Which pays a higher dividend, ESML or VOO?

ESML yields 0.91% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.

Is VOO better than ESML?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. ESML is less concentrated, with 4.5% of the fund in its ten largest positions against 37.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.