ESG vs VXUS
ESG vs VXUS
FlexShares STOXX US ESG Select Index Fund vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | ESG | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.05% | |
| AUM | $131M | $156.5B | |
| Dividend Yield | 0.87% | 2.60% | |
| Holdings | 253 | 8,747 | |
| YTD Return | +14.23% | +13.57% | |
| 1Y Return | +22.91% | +28.78% | |
| 3Y Return (annualized) | +18.95% | +18.63% | |
| 5Y Return (annualized) | +12.06% | +9.05% | |
| Volatility (annualized) | 17.5% | 15.1% | |
| Max Drawdown | -32.5% | -39.9% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2016 | Jan 26, 2011 |
ESG vs VXUS Performance
FlexShares STOXX US ESG Select Index Fund (ESG) is a ETF from Flexshares Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year ESG returned +22.91% while VXUS returned +28.78%. Year to date, ESG is up 14.23% versus a gain of 13.57% for VXUS.
Over three years, ESG compounded at +18.95% per year against +18.63% for VXUS; over five years the annualized figures are +12.06% and +9.05% respectively. Across the full 10-year window we track, ESG has the edge at +15.00% annualized vs +4.80%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESG charges 0.32% per year while VXUS charges 0.05%. On a $10,000 position that is $32 vs $5 annually, a gap of $27 per year that compounds over a long holding period. On income, ESG currently yields 0.87% against 2.60% for VXUS.
Holdings Overlap
ESG and VXUS share 3 holdings out of 8106 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ESG or VXUS?
ESG has an expense ratio of 0.32% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, ESG or VXUS?
Over the past year ESG returned +22.91% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +15.00% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, ESG or VXUS?
ESG has been the more volatile fund at 17.5% annualized versus 15.1% for VXUS. Worst drawdown: ESG -32.5% vs VXUS -39.9%.
Should I hold both ESG and VXUS?
ESG and VXUS have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESG and VXUS?
ESG and VXUS share 3 common holdings with a 0.1% weight overlap. Combined, they hold 8106 unique securities.
Which pays a higher dividend, ESG or VXUS?
ESG yields 0.87% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.