ESGD vs. VEA
Compare and contrast key facts about iShares ESG Aware MSCI EAFE ETF (ESGD) and Vanguard FTSE Developed Markets ETF (VEA).
ESGD and VEA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ESGD is a passively managed fund by iShares that tracks the performance of the MSCI EAFE Extended ESG Focus Index. It was launched on Jun 28, 2016. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. Both ESGD and VEA are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ESGD or VEA.
Key characteristics
| ESGD | VEA | |
|---|---|---|
| YTD Return | 7.27% | 6.85% |
| 1Y Return | 17.77% | 17.34% |
| 3Y Return (Ann) | 1.86% | 1.50% |
| 5Y Return (Ann) | 6.12% | 6.27% |
| Sharpe Ratio | 1.48 | 1.47 |
| Sortino Ratio | 2.11 | 2.09 |
| Omega Ratio | 1.26 | 1.26 |
| Calmar Ratio | 1.64 | 1.50 |
| Martin Ratio | 8.18 | 8.35 |
| Ulcer Index | 2.32% | 2.26% |
| Daily Std Dev | 12.81% | 12.79% |
| Max Drawdown | -33.70% | -60.70% |
| Current Drawdown | -6.26% | -5.68% |
Correlation
The correlation between ESGD and VEA is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
ESGD vs. VEA - Performance Comparison
In the year-to-date period, ESGD achieves a 7.27% return, which is significantly higher than VEA's 6.85% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ESGD vs. VEA - Expense Ratio Comparison
ESGD has a 0.20% expense ratio, which is higher than VEA's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
ESGD vs. VEA - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EAFE ETF (ESGD) and Vanguard FTSE Developed Markets ETF (VEA). 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.
Dividends
ESGD vs. VEA - Dividend Comparison
ESGD's dividend yield for the trailing twelve months is around 2.98%, which matches VEA's 2.99% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ESGD iShares ESG Aware MSCI EAFE ETF | 2.98% | 3.02% | 2.59% | 2.74% | 1.63% | 2.57% | 2.69% | 2.64% | 0.09% | 0.00% | 0.00% | 0.00% |
VEA Vanguard FTSE Developed Markets ETF | 2.99% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
Drawdowns
ESGD vs. VEA - Drawdown Comparison
The maximum ESGD drawdown since its inception was -33.70%, smaller than the maximum VEA drawdown of -60.70%. Use the drawdown chart below to compare losses from any high point for ESGD and VEA. For additional features, visit the drawdowns tool.
Volatility
ESGD vs. VEA - Volatility Comparison
iShares ESG Aware MSCI EAFE ETF (ESGD) has a higher volatility of 3.09% compared to Vanguard FTSE Developed Markets ETF (VEA) at 2.66%. This indicates that ESGD's price experiences larger fluctuations and is considered to be riskier than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.