ESGU vs VYM
ESGU vs VYM
iShares ESG Aware MSCI USA ETF 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 | ESGU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $17.7B | $79.0B | |
| Dividend Yield | 0.94% | 2.86% | |
| Holdings | 282 | 568 | |
| YTD Return | +13.46% | +15.20% | |
| 1Y Return | +22.70% | +25.56% | |
| 3Y Return (annualized) | +20.61% | +17.86% | |
| 5Y Return (annualized) | +12.03% | +12.35% | |
| Volatility (annualized) | 16.0% | 14.6% | |
| Max Drawdown | -33.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2016 | Nov 10, 2006 |
ESGU vs VYM Performance
iShares ESG Aware MSCI USA ETF (ESGU) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ESGU returned +22.70% while VYM returned +25.56%. Year to date, ESGU is up 13.46% versus a gain of 15.20% for VYM.
Over three years, ESGU compounded at +20.61% per year against +17.86% for VYM; over five years the annualized figures are +12.03% and +12.35% respectively. Across the full 10-year window we track, ESGU has the edge at +14.62% annualized vs +7.05%. 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 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 -33.9% for ESGU 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESGU charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, ESGU currently yields 0.94% against 2.86% for VYM.
Holdings Overlap
ESGU and VYM share 113 holdings out of 714 unique holdings combined, representing a 30.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ESGU | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 2.60% | 6.47% | 3.87% |
| JPM:US | 1.37% | 3.36% | 1.99% |
| XOM | 0.68% | 2.83% | 2.15% |
| JNJ | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| HD | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
See all 10 holdings ESGU 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, ESGU or VYM?
ESGU has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, ESGU or VYM?
Over the past year ESGU returned +22.70% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), ESGU annualized +14.62% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, ESGU or VYM?
ESGU has been the more volatile fund at 16.0% annualized versus 14.6% for VYM. Worst drawdown: ESGU -33.9% vs VYM -58.8%.
Should I hold both ESGU and VYM?
ESGU and VYM 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 ESGU and VYM?
ESGU and VYM share 113 common holdings with a 30.4% weight overlap. Combined, they hold 714 unique securities.
Which pays a higher dividend, ESGU or VYM?
ESGU yields 0.94% while VYM yields 2.86%, so VYM 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.