ESG vs VYM
ESG vs VYM
FlexShares STOXX US ESG Select Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | ESG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.04% | |
| AUM | $131M | $79.0B | |
| Dividend Yield | 0.87% | 2.86% | |
| Holdings | 253 | 568 | |
| YTD Return | +14.54% | +15.20% | |
| 1Y Return | +22.87% | +25.56% | |
| 3Y Return (annualized) | +19.02% | +17.86% | |
| 5Y Return (annualized) | +11.98% | +12.35% | |
| Volatility (annualized) | 17.5% | 14.6% | |
| Max Drawdown | -32.5% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2016 | Nov 10, 2006 |
ESG vs VYM Performance
FlexShares STOXX US ESG Select Index Fund (ESG) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ESG returned +22.87% while VYM returned +25.56%. Year to date, ESG is up 14.54% versus a gain of 15.20% for VYM.
Over three years, ESG compounded at +19.02% per year against +17.86% for VYM; over five years the annualized figures are +11.98% and +12.35% respectively. Across the full 10-year window we track, ESG has the edge at +15.03% annualized vs +7.05%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESG charges 0.32% per year while VYM charges 0.04%. On a $10,000 position that is $32 vs $4 annually, a gap of $28 per year that compounds over a long holding period. On income, ESG currently yields 0.87% against 2.86% for VYM.
Holdings Overlap
ESG and VYM share 112 holdings out of 695 unique holdings combined, representing a 44.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ESG | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 5.82% | 6.47% | 0.65% |
| JPM:US | 3.67% | 3.36% | 0.31% |
| XOM | 2.86% | 2.83% | 0.03% |
| JNJ | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
| MRK | Pro | Pro | Pro |
| BAC | Pro | Pro | Pro |
See all 10 holdings ESG shares with VYM 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 VYM?
ESG has an expense ratio of 0.32% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, ESG or VYM?
Over the past year ESG returned +22.87% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +15.03% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, ESG or VYM?
ESG has been the more volatile fund at 17.5% annualized versus 14.6% for VYM. Worst drawdown: ESG -32.5% vs VYM -58.8%.
Should I hold both ESG and VYM?
ESG and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESG and VYM?
ESG and VYM share 112 common holdings with a 44.0% weight overlap. Combined, they hold 695 unique securities.
Which pays a higher dividend, ESG or VYM?
ESG yields 0.87% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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