ESG vs. USPX

Last updated Aug 2, 2026

ESG (FlexShares STOXX US ESG Select Index Fund) and USPX (Franklin U.S. Equity Index ETF) are both Large Cap Blend Equities funds - ESG tracks the STOXX USA ESG Select KPIs Index while USPX tracks the Morningstar US Target Market Exposure Index. Both are passively managed. Over the past 10 years, ESG returned 14.84%/yr vs 12.14%/yr for USPX. Their correlation of 0.83 means they have usually moved in the same direction. ESG charges 0.32%/yr vs 0.03%/yr for USPX.

Performance

ESG vs. USPX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares STOXX US ESG Select Index Fund (ESG) and Franklin U.S. Equity Index ETF (USPX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESG achieves a 11.91% return, which is significantly higher than USPX's 9.67% return. Over the past 10 years, ESG has outperformed USPX with an annualized return of 14.84%, while USPX has yielded a comparatively lower 12.14% annualized return.

ESG

• 1D: 0.20%
• 1M: 0.58%
• 6M: 9.98%
• YTD: 11.91%
• 1Y: 22.28%
• 3Y*: 17.88%
• 5Y*: 11.70%
• 10Y*: 14.84%
• ALL TIME*: 14.86%

USPX

• 1D: 0.59%
• 1M: 0.02%
• 6M: 8.24%
• YTD: 9.67%
• 1Y: 20.68%
• 3Y*: 19.24%
• 5Y*: 11.75%
• 10Y*: 12.14%
• ALL TIME*: 12.43%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ESG FlexShares STOXX US ESG Select Index Fund	$141.70K	$104.98K	$155.55K
USPX Franklin U.S. Equity Index ETF	$3.15M	$2.94M	$3.73M

ESG vs. USPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESG FlexShares STOXX US ESG Select Index Fund	11.91%	16.04%	20.22%	27.86%	-19.89%	28.48%	20.75%	31.74%	-5.17%	22.78%
USPX Franklin U.S. Equity Index ETF	9.67%	17.78%	24.97%	27.07%	-18.88%	19.53%	9.72%	26.60%	-7.78%	23.80%

Correlation

The correlation between ESG and USPX is 0.93, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.93
Correlation (3Y) Balances recent behavior with more history.	0.95
Correlation (5Y) Shows whether the relationship held over a longer period.	0.94
Correlation (10Y) Provides a long-term view across more market conditions.	0.83
Correlation (All Time) Calculated using the full available price history since Jul 14, 2016	0.83

The correlation between ESG and USPX shifts across timeframes, from 0.83 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.

ESG vs. USPX - Sectors Allocation Comparison

Sectors	ESG	USPX
Technology	33.3%	37.4%
Financial Services	18.3%	12.5%
Healthcare	13.7%	9.4%
Consumer Defensive	9.3%	4.7%
Consumer Cyclical	8.2%	8.8%
Industrials	4.6%	7.9%
Energy	3.6%	3.4%
Basic Materials	3.1%	1.7%
Real Estate	2.9%	1.8%
Communication Services	0.8%	9.6%
Utilities	0.7%	2.6%

Return for Risk

ESG vs. USPX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ESG

ESG Risk / Return Rank: 74
ESG Sharpe Ratio Rank: 76
ESG Sortino Ratio Rank: 75
ESG Omega Ratio Rank: 74
ESG Calmar Ratio Rank: 68
ESG Martin Ratio Rank: 77

USPX

USPX Risk / Return Rank: 61
USPX Sharpe Ratio Rank: 61
USPX Sortino Ratio Rank: 59
USPX Omega Ratio Rank: 59
USPX Calmar Ratio Rank: 58
USPX Martin Ratio Rank: 70

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ESG vs. USPX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares STOXX US ESG Select Index Fund (ESG) and Franklin U.S. Equity Index ETF (USPX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ESG	USPX	Difference
Sharpe ratio: Return per unit of total volatility	1.74	1.44	+0.30
Sortino ratio: Return per unit of downside risk	2.42	2.01	+0.41
Omega ratio: Gain probability vs. loss probability	1.31	1.26	+0.05
Calmar ratio: Return relative to maximum drawdown	2.36	2.04	+0.32
Martin ratio: Return relative to average drawdown	9.79	8.56	+1.23

ESG vs. USPX - Sharpe Ratio Comparison

The current ESG Sharpe Ratio is 1.74, which is comparable to the USPX Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of ESG and USPX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ESG vs. USPX - Drawdown Comparison

The maximum ESG drawdown since its inception was -32.53%, roughly equal to the maximum USPX drawdown of -31.21%. Use the drawdown chart below to compare losses from any high point for ESG and USPX.

Drawdown Indicators

	ESG	USPX	Difference
Max Drawdown Largest peak-to-trough decline	-32.53%	-31.21%	-1.32%
Max Drawdown (1Y) Largest decline over 1 year	-8.68%	-9.15%	+0.47%
Max Drawdown (3Y) Largest decline over 3 years	-18.32%	-19.21%	+0.89%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-24.60%	-1.44%
Max Drawdown (10Y) Largest decline over 10 years	-32.53%	-31.21%	-1.32%
Current Drawdown Current decline from peak	-0.71%	-1.63%	+0.92%
Average Drawdown Average peak-to-trough decline	-5.01%	-4.40%	-0.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.09%	2.18%	-0.09%

Volatility

ESG vs. USPX - Volatility Comparison

FlexShares STOXX US ESG Select Index Fund (ESG) and Franklin U.S. Equity Index ETF (USPX) have volatilities of 3.30% and 3.39%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESG	USPX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.30%	3.39%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	9.35%	10.23%	-0.88%
Volatility (1Y) Calculated over the trailing 1-year period	11.82%	13.02%	-1.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.79%	16.30%	+0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.33%	15.97%	+2.36%

ESG vs. USPX - Expense Ratio Comparison

ESG has a 0.32% expense ratio, which is higher than USPX's 0.03% expense ratio.

Dividends

ESG vs. USPX - Dividend Comparison

ESG's dividend yield for the trailing twelve months is around 0.87%, less than USPX's 1.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ESG FlexShares STOXX US ESG Select Index Fund	0.87%	0.96%	1.18%	1.10%	1.38%	1.03%	1.33%	1.51%	1.72%	1.52%	0.92%
USPX Franklin U.S. Equity Index ETF	1.09%	1.07%	1.23%	1.35%	2.21%	2.40%	2.51%	3.07%	2.91%	2.60%	4.89%

Frequently Asked Questions

Can I hold both ESG and USPX in my portfolio?

With a correlation of 0.93, ESG and USPX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ESG or USPX?

USPX has higher volatility (3.39%) compared to ESG (3.30%). In terms of maximum drawdown, ESG dropped -32.53% vs USPX's -31.21%.

Which ETF is better, ESG or USPX?

On 10-year performance, ESG leads with 14.84% vs 12.14% for USPX. On fees, USPX is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESG or USPX?

Over the 10-year period, ESG has performed better with a 14.84% return vs 12.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESG or USPX?

USPX is cheaper with a 0.03% expense ratio, compared with 0.32% for ESG.

Which ETF pays a higher dividend yield, ESG or USPX?

USPX has the higher dividend yield at 1.09%, compared with 0.87% for ESG.

What is the main difference between ESG and USPX?

ESG tracks STOXX USA ESG Select KPIs Index, while USPX tracks Morningstar US Target Market Exposure Index. They also come from different issuers: Northern Trust and Franklin Templeton. Their fees differ too: 0.32% for ESG and 0.03% for USPX.

Which has better risk-adjusted returns?

ESG currently has the higher Sharpe Ratio (1.74 vs 1.44), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.