ESG vs VTI
ESG vs VTI
FlexShares STOXX US ESG Select Index Fund vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | ESG | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.03% | |
| AUM | $131M | $663.5B | |
| Dividend Yield | 0.87% | 1.07% | |
| Holdings | 253 | 3,543 | |
| YTD Return | +14.54% | +13.39% | |
| 1Y Return | +22.87% | +23.21% | |
| 3Y Return (annualized) | +19.02% | +20.65% | |
| 5Y Return (annualized) | +11.98% | +12.18% | |
| Volatility (annualized) | 17.5% | 15.3% | |
| Max Drawdown | -32.5% | -56.6% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2016 | May 24, 2001 |
ESG vs VTI Performance
FlexShares STOXX US ESG Select Index Fund (ESG) is a ETF from Flexshares Trust and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year ESG returned +22.87% while VTI returned +23.21%. Year to date, ESG is up 14.54% versus a gain of 13.39% for VTI.
Over three years, ESG compounded at +19.02% per year against +20.65% for VTI; over five years the annualized figures are +11.98% and +12.18% respectively. Across the full 10-year window we track, ESG has the edge at +15.03% annualized vs +8.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESG has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -32.5% for ESG 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESG charges 0.32% per year while VTI charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, ESG currently yields 0.87% against 1.07% for VTI.
Holdings Overlap
ESG and VTI share 228 holdings out of 2804 unique holdings combined, representing a 54.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in ESG | Weight in VTI | Difference |
|---|---|---|---|
| NVDA | 4.92% | 6.32% | 1.40% |
| AAPL | 5.08% | 5.84% | 0.76% |
| MSFT | 4.68% | 3.81% | 0.87% |
| AVGO | Pro | Pro | Pro |
| AMZN | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| JPM:US | Pro | Pro | Pro |
| LLY | Pro | Pro | Pro |
| BRK.B | Pro | Pro | Pro |
| XOM | Pro | Pro | Pro |
See all 10 holdings ESG shares with VTI Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, ESG or VTI?
ESG has an expense ratio of 0.32% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, ESG or VTI?
Over the past year ESG returned +22.87% vs +23.21% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +15.03% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, ESG or VTI?
ESG has been the more volatile fund at 17.5% annualized versus 15.3% for VTI. Worst drawdown: ESG -32.5% vs VTI -56.6%.
Should I hold both ESG and VTI?
ESG and VTI have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESG and VTI?
ESG and VTI share 228 common holdings with a 54.7% weight overlap. Combined, they hold 2804 unique securities.
Which pays a higher dividend, ESG or VTI?
ESG yields 0.87% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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