ESGV: Still Ahead Of The Benchmark, But Some Peers Are More Compelling
Vanguard ESG U.S. Stock ETF offers broad ESG-screened exposure, heavily weighted toward technology and large caps. ESGV has outperformed VTI since inception, demonstrating ESG criteria do not inherently hinder performance, though recent 12-month returns slightly lag the benchmark. The ETF boasts the lowest expense ratio among major ESG peers, but its total return and Sharpe ratio since 2020 trail several competitors.
XVV: A Strong ESG-Focused Investment With Potential For Long-Term Growth
XVV: A Strong ESG-Focused Investment With Potential For Long-Term Growth
For ESGV, Ethics Is Not A Drag
Vanguard ESG U.S. Stock ETF (ESGV) excludes companies involved in vice products, non-renewable energy, weapons, and controversial practices. ESGV is heavily concentrated in technology and large caps, and its fundamentals are below average. However, ESGV has outperformed the Vanguard Total Stock Market Index since inception, challenging the notion that ethical investing hampers performance.
ESGV: Diversification Is Key For ESG Investors
ESGV is a total market ETF that excludes companies operating in the fossil fuels, vice products, and weapons industries. Additional conduct screens eliminate other "controversial" stocks like Johnson & Johnson. These screens may not be comprehensive enough for some investors, and the subjective conduct screen means it may not be consistently applied. Still, it's a step in the right direction. Historical performance is solid but not exceptional, as other ETFs, particularly SUSL, have proved better over the last five years. However, I expect ESGV will catch up shortly.
Six Months Into 2024, This Vanguard ESG Fund Trailed the S&P 500. But Don't Panic If You Own It.
The S&P 500 Index outperformed the Vanguard ESG U.S. Stock ETF in the first half of 2024. This Vanguard ETF is a good option for investors looking to replace the S&P with a fund more tightly focused on socially responsible companies.
Can Vanguard ESG U.S. Stock ETF Be Your Only Stock Holding?
Vanguard ESG U.S. Stock ETF avoids investing in companies that might run afoul of environmental, social, and governance concerns. The exchange-traded fund has performed fairly well compared to the S&P 500 Index.
