ESGU vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricESGUSPYWinner
Expense Ratio0.15%0.09%
AUM$17.7B$789.1B
Dividend Yield0.94%1.01%
Holdings282505
YTD Return+13.88%+13.50%
1Y Return+23.42%+23.56%
3Y Return (annualized)+20.80%+21.17%
5Y Return (annualized)+12.27%+13.46%
Volatility (annualized)16.0%15.3%
Max Drawdown-33.9%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionDec 1, 2016Jan 22, 1993

ESGU vs SPY Performance

iShares ESG Aware MSCI USA ETF (ESGU) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ESGU returned +23.42% while SPY returned +23.56%. Year to date, ESGU is up 13.88% versus a gain of 13.50% for SPY.

Over three years, ESGU compounded at +20.80% per year against +21.17% for SPY; over five years the annualized figures are +12.27% and +13.46% respectively. Across the full 10-year window we track, ESGU has the edge at +14.68% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ESGU has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 15.3% for SPY. 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 -33.9% for ESGU and -56.5% for SPY. 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 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

ESGU charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, ESGU currently yields 0.94% against 1.01% for SPY.

Holdings Overlap

78.0%overlap

ESGU and SPY share 246 holdings out of 526 unique holdings combined, representing a 78.0% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in ESGUWeight in SPYDifference
NVDA6.95%7.31%0.36%
AAPL6.94%7.09%0.15%
MSFT4.21%4.43%0.22%
AMZNProProPro
GOOGProProPro
GOOGLProProPro
AVGOProProPro
METAProProPro
TSLAProProPro
MUProProPro
See all 10 holdings ESGU shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, ESGU or SPY?

ESGU has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, ESGU or SPY?

Over the past year ESGU returned +23.42% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), ESGU annualized +14.68% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, ESGU or SPY?

ESGU has been the more volatile fund at 16.0% annualized versus 15.3% for SPY. Worst drawdown: ESGU -33.9% vs SPY -56.5%.

Should I hold both ESGU and SPY?

ESGU and SPY have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between ESGU and SPY?

ESGU and SPY share 246 common holdings with a 78.0% weight overlap. Combined, they hold 526 unique securities.

Which pays a higher dividend, ESGU or SPY?

ESGU yields 0.94% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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