ESGU vs. ESGE
Compare and contrast key facts about iShares ESG MSCI USA ETF (ESGU) and iShares ESG Aware MSCI EM ETF (ESGE).
ESGU and ESGE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ESGU is a passively managed fund by iShares that tracks the performance of the MSCI USA ESG Focus Index. It was launched on Dec 1, 2016. ESGE is a passively managed fund by iShares that tracks the performance of the MSCI EM Extended ESG Focus Index. It was launched on Jun 28, 2016. Both ESGU and ESGE 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: ESGU or ESGE.
Key characteristics
| ESGU | ESGE | |
|---|---|---|
| YTD Return | 5.10% | 0.37% |
| 1Y Return | 23.22% | 7.80% |
| 3Y Return (Ann) | 6.31% | -7.53% |
| 5Y Return (Ann) | 12.81% | 0.69% |
| Sharpe Ratio | 1.82 | 0.44 |
| Daily Std Dev | 11.99% | 15.10% |
| Max Drawdown | -33.87% | -41.07% |
| Current Drawdown | -4.40% | -26.31% |
Correlation
The correlation between ESGU and ESGE is 0.64, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
ESGU vs. ESGE - Performance Comparison
In the year-to-date period, ESGU achieves a 5.10% return, which is significantly higher than ESGE's 0.37% 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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ESGU vs. ESGE - Expense Ratio Comparison
ESGU has a 0.15% expense ratio, which is lower than ESGE's 0.25% expense ratio. Despite the difference, 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
ESGU vs. ESGE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI USA ETF (ESGU) and iShares ESG Aware MSCI EM ETF (ESGE). 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
ESGU vs. ESGE - Dividend Comparison
ESGU's dividend yield for the trailing twelve months is around 1.29%, less than ESGE's 2.64% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|
ESGU iShares ESG MSCI USA ETF | 1.29% | 1.43% | 1.58% | 1.06% | 1.27% | 1.32% | 1.81% | 1.82% | 0.00% |
ESGE iShares ESG Aware MSCI EM ETF | 2.64% | 2.64% | 2.68% | 2.66% | 1.31% | 2.59% | 2.19% | 1.86% | 0.27% |
Drawdowns
ESGU vs. ESGE - Drawdown Comparison
The maximum ESGU drawdown since its inception was -33.87%, smaller than the maximum ESGE drawdown of -41.07%. Use the drawdown chart below to compare losses from any high point for ESGU and ESGE. For additional features, visit the drawdowns tool.
Volatility
ESGU vs. ESGE - Volatility Comparison
The current volatility for iShares ESG MSCI USA ETF (ESGU) is 3.85%, while iShares ESG Aware MSCI EM ETF (ESGE) has a volatility of 4.55%. This indicates that ESGU experiences smaller price fluctuations and is considered to be less risky than ESGE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.