ESG vs. USSG

Last updated Jun 13, 2026

ESG (FlexShares STOXX US ESG Select Index Fund) and USSG (Xtrackers MSCI USA ESG Leaders Equity ETF) are both Large Cap Growth Equities funds - ESG tracks the STOXX USA ESG Select KPIs Index while USSG tracks the MSCI USA ESG Leaders. Both are passively managed. Over the past 5 years, ESG returned 12.21%/yr vs 13.46%/yr for USSG. With a 0.95 correlation, they move nearly in lockstep. ESG charges 0.32%/yr vs 0.10%/yr for USSG.

Performance

ESG vs. USSG - Performance Comparison

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

Returns By Period

In the year-to-date period, ESG achieves a 10.25% return, which is significantly higher than USSG's 8.73% return.

ESG

• 1D: 0.40%
• 1M: 1.94%
• YTD: 10.25%
• 6M: 10.80%
• 1Y: 22.45%
• 3Y*: 19.24%
• 5Y*: 12.21%
• 10Y*: —

USSG

• 1D: 0.64%
• 1M: -0.19%
• YTD: 8.73%
• 6M: 9.70%
• 1Y: 25.14%
• 3Y*: 21.32%
• 5Y*: 13.46%
• 10Y*: —

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

ESG vs. USSG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
ESG FlexShares STOXX US ESG Select Index Fund	10.25%	16.04%	20.22%	27.86%	-19.89%	28.48%	20.75%	19.13%
USSG Xtrackers MSCI USA ESG Leaders Equity ETF	8.73%	18.97%	23.45%	29.17%	-20.33%	31.83%	18.71%	19.24%

Correlation

The correlation between ESG and USSG is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Mar 7, 2019	0.95

The correlation between ESG and USSG has been stable across timeframes, ranging from 0.88 to 0.95 - a consistent structural relationship.

ESG vs. USSG - Sectors Allocation Comparison

Sectors	ESG	USSG
Technology	36.7%	36.9%
Financial Services	16.9%	10.6%
Healthcare	11.2%	9.6%
Consumer Cyclical	10.0%	8.6%
Consumer Defensive	9.2%	4.2%
Industrials	4.5%	8.1%
Energy	3.1%	2.1%
Basic Materials	3.0%	2.1%
Real Estate	2.7%	2.2%
Communication Services	1.0%	14.5%
Utilities	0.7%	1.1%

Return for Risk

ESG vs. USSG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ESG

ESG Risk / Return Rank: 67
ESG Sharpe Ratio Rank: 69
ESG Sortino Ratio Rank: 68
ESG Omega Ratio Rank: 67
ESG Calmar Ratio Rank: 60
ESG Martin Ratio Rank: 68

USSG

USSG Risk / Return Rank: 60
USSG Sharpe Ratio Rank: 64
USSG Sortino Ratio Rank: 63
USSG Omega Ratio Rank: 62
USSG Calmar Ratio Rank: 51
USSG Martin Ratio Rank: 60

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ESG vs. USSG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares STOXX US ESG Select Index Fund (ESG) and Xtrackers MSCI USA ESG Leaders Equity ETF (USSG). 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	USSG	Difference
Sharpe ratio: Return per unit of total volatility	1.96	1.85	+0.10
Sortino ratio: Return per unit of downside risk	2.70	2.58	+0.12
Omega ratio: Gain probability vs. loss probability	1.35	1.33	+0.02
Calmar ratio: Return relative to maximum drawdown	2.60	2.25	+0.34
Martin ratio: Return relative to average drawdown	11.00	9.54	+1.46

ESG vs. USSG - Sharpe Ratio Comparison

The current ESG Sharpe Ratio is 1.96, which is comparable to the USSG Sharpe Ratio of 1.85. The chart below compares the historical Sharpe Ratios of ESG and USSG, 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. USSG - Drawdown Comparison

The maximum ESG drawdown since its inception was -32.53%, roughly equal to the maximum USSG drawdown of -34.10%. Use the drawdown chart below to compare losses from any high point for ESG and USSG.

Drawdown Indicators

	ESG	USSG	Difference
Max Drawdown Largest peak-to-trough decline	-32.53%	-34.10%	+1.57%
Max Drawdown (1Y) Largest decline over 1 year	-8.68%	-11.20%	+2.52%
Max Drawdown (3Y) Largest decline over 3 years	-18.32%	-20.00%	+1.68%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-27.00%	+0.96%
Current Drawdown Current decline from peak	-2.18%	-1.91%	-0.27%
Average Drawdown Average peak-to-trough decline	-5.06%	-5.58%	+0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.05%	2.64%	-0.59%

Volatility

ESG vs. USSG - Volatility Comparison

The current volatility for FlexShares STOXX US ESG Select Index Fund (ESG) is 4.20%, while Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) has a volatility of 4.92%. This indicates that ESG experiences smaller price fluctuations and is considered to be less risky than USSG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESG	USSG	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.20%	4.92%	-0.72%
Volatility (6M) Calculated over the trailing 6-month period	9.04%	10.77%	-1.73%
Volatility (1Y) Calculated over the trailing 1-year period	11.53%	13.61%	-2.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.78%	17.66%	-0.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.36%	20.17%	-1.81%

ESG vs. USSG - Expense Ratio Comparison

ESG has a 0.32% expense ratio, which is higher than USSG's 0.10% expense ratio.

Dividends

ESG vs. USSG - Dividend Comparison

ESG's dividend yield for the trailing twelve months is around 0.88%, less than USSG's 0.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ESG FlexShares STOXX US ESG Select Index Fund	0.88%	0.96%	1.18%	1.10%	1.38%	1.03%	1.33%	1.51%	1.72%	1.52%	0.92%
USSG Xtrackers MSCI USA ESG Leaders Equity ETF	0.95%	1.02%	1.13%	1.60%	1.52%	1.13%	1.42%	1.21%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ESG and USSG in my portfolio?

ESG and USSG have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESG or USSG?

USSG has higher volatility (4.92%) compared to ESG (4.20%). In terms of maximum drawdown, ESG dropped -32.53% vs USSG's -34.10%.

Which ETF is better, ESG or USSG?

On 5-year performance, USSG leads with 13.46% vs 12.21% for ESG. On fees, USSG is cheaper at 0.10% per year. On volatility, ESG has been the lower-risk option at 4.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESG or USSG?

Over the 5-year period, USSG has performed better with a 13.46% return vs 12.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESG or USSG?

USSG is cheaper with a 0.10% expense ratio, compared with 0.32% for ESG.

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

USSG has the higher dividend yield at 0.95%, compared with 0.88% for ESG.

What is the main difference between ESG and USSG?

ESG tracks STOXX USA ESG Select KPIs Index, while USSG tracks MSCI USA ESG Leaders. They also come from different issuers: Northern Trust and Deutsche Bank. Their fees differ too: 0.32% for ESG and 0.10% for USSG.

Which has better risk-adjusted returns?

ESG currently has the higher Sharpe Ratio (1.96 vs 1.85), 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.