ESGU vs. VOO

Last updated Jun 9, 2026

ESGU (iShares ESG Aware MSCI USA ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - ESGU is a Large Cap Blend Equities fund tracking the MSCI USA Extended ESG Focus Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 5 years, ESGU returned 12.29%/yr vs 13.49%/yr for VOO. With a 0.96 correlation, they move nearly in lockstep. ESGU charges 0.15%/yr vs 0.03%/yr for VOO.

Performance

ESGU vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI USA ETF (ESGU) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with ESGU having a 8.75% return and VOO slightly lower at 8.72%.

ESGU

• 1D: 0.27%
• 1M: 0.72%
• YTD: 8.75%
• 6M: 8.58%
• 1Y: 24.51%
• 3Y*: 21.00%
• 5Y*: 12.29%
• 10Y*: —

VOO

• 1D: 0.25%
• 1M: 0.24%
• YTD: 8.72%
• 6M: 8.77%
• 1Y: 24.91%
• 3Y*: 21.45%
• 5Y*: 13.49%
• 10Y*: 15.35%

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

ESGU vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESGU iShares ESG Aware MSCI USA ETF	8.75%	16.90%	24.31%	25.79%	-20.27%	26.89%	22.54%	31.72%	-4.32%	21.07%
VOO Vanguard S&P 500 ETF	8.72%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between ESGU and VOO is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (All Time) Calculated using the full available price history since Dec 6, 2016	0.96

The correlation between ESGU and VOO has been stable across timeframes, ranging from 0.96 to 1.00 - a consistent structural relationship.

ESGU vs. VOO - Sectors Allocation Comparison

Sectors	ESGU	VOO
Technology	39.0%	35.7%
Financial Services	11.1%	11.6%
Communication Services	9.8%	11.3%
Consumer Cyclical	9.3%	10.2%
Healthcare	8.8%	8.5%
Industrials	7.9%	8.3%
Consumer Defensive	4.2%	4.9%
Energy	3.5%	3.5%
Utilities	2.3%	2.4%
Basic Materials	2.0%	1.8%
Real Estate	2.0%	1.9%

Return for Risk

ESGU vs. VOO — Risk / Return Rank

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

ESGU

ESGU Risk / Return Rank: 65
ESGU Sharpe Ratio Rank: 67
ESGU Sortino Ratio Rank: 64
ESGU Omega Ratio Rank: 66
ESGU Calmar Ratio Rank: 59
ESGU Martin Ratio Rank: 71

VOO

VOO Risk / Return Rank: 69
VOO Sharpe Ratio Rank: 71
VOO Sortino Ratio Rank: 68
VOO Omega Ratio Rank: 71
VOO Calmar Ratio Rank: 62
VOO Martin Ratio Rank: 75

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.

ESGU vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI USA ETF (ESGU) and Vanguard S&P 500 ETF (VOO). 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.

	ESGU	VOO	Difference
Sharpe ratio: Return per unit of total volatility	1.98	2.08	-0.10
Sortino ratio: Return per unit of downside risk	2.65	2.80	-0.14
Omega ratio: Gain probability vs. loss probability	1.36	1.38	-0.02
Calmar ratio: Return relative to maximum drawdown	2.66	2.81	-0.15
Martin ratio: Return relative to average drawdown	12.00	12.97	-0.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESGU vs. VOO - Sharpe Ratio Comparison

The current ESGU Sharpe Ratio is 1.98, which is comparable to the VOO Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of ESGU and VOO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ESGU	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.98	2.08	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.80	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.85	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.82	0.88	-0.06

Drawdowns

ESGU vs. VOO - Drawdown Comparison

The maximum ESGU drawdown since its inception was -33.87%, roughly equal to the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for ESGU and VOO.

Drawdown Indicators

	ESGU	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-33.87%	-33.99%	+0.12%
Max Drawdown (1Y) Largest decline over 1 year	-9.26%	-8.90%	-0.36%
Max Drawdown (3Y) Largest decline over 3 years	-19.32%	-18.69%	-0.63%
Max Drawdown (5Y) Largest decline over 5 years	-26.15%	-24.52%	-1.63%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.99%	—
Current Drawdown Current decline from peak	-2.86%	-2.66%	-0.20%
Average Drawdown Average peak-to-trough decline	-4.89%	-3.69%	-1.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.05%	1.92%	+0.13%

Volatility

ESGU vs. VOO - Volatility Comparison

iShares ESG Aware MSCI USA ETF (ESGU) has a higher volatility of 3.94% compared to Vanguard S&P 500 ETF (VOO) at 3.73%. This indicates that ESGU's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESGU	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.94%	3.73%	+0.21%
Volatility (6M) Calculated over the trailing 6-month period	9.64%	9.31%	+0.33%
Volatility (1Y) Calculated over the trailing 1-year period	12.46%	12.08%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.36%	16.85%	+0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.61%	18.03%	+0.58%

ESGU vs. VOO - Expense Ratio Comparison

ESGU has a 0.15% expense ratio, which is higher than VOO's 0.03% 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%.

Dividends

ESGU vs. VOO - Dividend Comparison

ESGU's dividend yield for the trailing twelve months is around 0.94%, less than VOO's 1.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGU iShares ESG Aware MSCI USA ETF	0.94%	0.99%	1.18%	1.43%	1.58%	1.06%	1.27%	1.32%	1.73%	1.82%	0.00%	0.00%
VOO Vanguard S&P 500 ETF	1.05%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both ESGU and VOO in my portfolio?

With a correlation of 0.99, ESGU and VOO 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, ESGU or VOO?

ESGU has higher volatility (3.94%) compared to VOO (3.73%). In terms of maximum drawdown, ESGU dropped -33.87% vs VOO's -33.99%.

Which ETF is better, ESGU or VOO?

On 5-year performance, VOO leads with 13.49% vs 12.29% for ESGU. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 3.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGU or VOO?

Over the 5-year period, VOO has performed better with a 13.49% return vs 12.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGU or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.15% for ESGU.

Which ETF pays a higher dividend yield, ESGU or VOO?

VOO has the higher dividend yield at 1.05%, compared with 0.94% for ESGU.

What is the main difference between ESGU and VOO?

ESGU is categorized as Large Cap Blend Equities, while VOO is S&P 500. ESGU tracks MSCI USA Extended ESG Focus Index, while VOO tracks S&P 500 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for ESGU and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (2.08 vs 1.98), 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.