PABU vs. ESGD

Last updated Jun 16, 2026

PABU (iShares Paris-Aligned Climate Optimized MSCI USA ETF) and ESGD (iShares ESG Aware MSCI EAFE ETF) are both exchange-traded funds - PABU is a Large Cap Blend Equities fund tracking the MSCI USA Climate Paris Aligned Benchmark Extended Select PAB Index (USD), while ESGD is a Foreign Large Cap Equities fund tracking the MSCI EAFE Extended ESG Focus Index. Both are passively managed. Over the past 3 years, PABU returned 18.02%/yr vs 15.36%/yr for ESGD. A 0.69 correlation means they provide meaningful diversification when combined. PABU charges 0.10%/yr vs 0.20%/yr for ESGD.

Performance

PABU vs. ESGD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) and iShares ESG Aware MSCI EAFE ETF (ESGD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PABU achieves a 6.81% return, which is significantly lower than ESGD's 9.85% return.

PABU

• 1D: 1.98%
• 1M: 1.91%
• YTD: 6.81%
• 6M: 7.83%
• 1Y: 20.95%
• 3Y*: 18.02%
• 5Y*: —
• 10Y*: —

ESGD

• 1D: 0.66%
• 1M: 3.97%
• YTD: 9.85%
• 6M: 10.51%
• 1Y: 21.72%
• 3Y*: 15.36%
• 5Y*: 8.21%
• 10Y*: —

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

PABU vs. ESGD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
PABU iShares Paris-Aligned Climate Optimized MSCI USA ETF	6.81%	13.08%	24.84%	29.51%	-15.45%
ESGD iShares ESG Aware MSCI EAFE ETF	9.85%	29.63%	3.95%	18.53%	-12.95%

Correlation

The correlation between PABU and ESGD is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (All Time) Calculated using the full available price history since Feb 11, 2022	0.69

The correlation between PABU and ESGD has been stable across timeframes, ranging from 0.68 to 0.71 - a consistent structural relationship.

PABU vs. ESGD - Sectors Allocation Comparison

Sectors	PABU	ESGD
Technology	52.1%	12.6%
Real Estate	16.6%	1.6%
Communication Services	8.4%	4.3%
Financial Services	6.8%	25.8%
Consumer Cyclical	6.0%	6.6%
Healthcare	5.7%	9.9%
Industrials	1.6%	18.2%
Utilities	1.6%	3.7%
Energy	0.9%	3.9%
Basic Materials	0.5%	5.5%
Consumer Defensive	-	7.0%

Return for Risk

PABU vs. ESGD — Risk / Return Rank

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

PABU

PABU Risk / Return Rank: 40
PABU Sharpe Ratio Rank: 45
PABU Sortino Ratio Rank: 43
PABU Omega Ratio Rank: 44
PABU Calmar Ratio Rank: 33
PABU Martin Ratio Rank: 37

ESGD

ESGD Risk / Return Rank: 43
ESGD Sharpe Ratio Rank: 43
ESGD Sortino Ratio Rank: 43
ESGD Omega Ratio Rank: 42
ESGD Calmar Ratio Rank: 41
ESGD Martin Ratio Rank: 46

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.

PABU vs. ESGD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) and iShares ESG Aware MSCI EAFE ETF (ESGD). 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.

	PABU	ESGD	Difference
Sharpe ratio: Return per unit of total volatility	1.50	1.38	+0.12
Sortino ratio: Return per unit of downside risk	2.05	2.01	+0.05
Omega ratio: Gain probability vs. loss probability	1.27	1.25	+0.02
Calmar ratio: Return relative to maximum drawdown	1.57	1.87	-0.30
Martin ratio: Return relative to average drawdown	5.37	6.97	-1.59

PABU vs. ESGD - Sharpe Ratio Comparison

The current PABU Sharpe Ratio is 1.50, which is comparable to the ESGD Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of PABU and ESGD, 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

PABU vs. ESGD - Drawdown Comparison

The maximum PABU drawdown since its inception was -22.76%, smaller than the maximum ESGD drawdown of -33.70%. Use the drawdown chart below to compare losses from any high point for PABU and ESGD.

Drawdown Indicators

	PABU	ESGD	Difference
Max Drawdown Largest peak-to-trough decline	-22.76%	-33.70%	+10.94%
Max Drawdown (1Y) Largest decline over 1 year	-13.40%	-11.68%	-1.72%
Max Drawdown (3Y) Largest decline over 3 years	-20.85%	-13.86%	-6.99%
Max Drawdown (5Y) Largest decline over 5 years	—	-30.03%	—
Current Drawdown Current decline from peak	-3.61%	0.00%	-3.61%
Average Drawdown Average peak-to-trough decline	-5.62%	-6.17%	+0.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.91%	3.13%	+0.78%

Volatility

PABU vs. ESGD - Volatility Comparison

iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) has a higher volatility of 5.97% compared to iShares ESG Aware MSCI EAFE ETF (ESGD) at 5.58%. This indicates that PABU's price experiences larger fluctuations and is considered to be riskier than ESGD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PABU	ESGD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.97%	5.58%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	11.32%	13.32%	-2.00%
Volatility (1Y) Calculated over the trailing 1-year period	14.06%	15.82%	-1.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.76%	16.73%	+2.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.76%	17.00%	+1.76%

PABU vs. ESGD - Expense Ratio Comparison

PABU has a 0.10% expense ratio, which is lower than ESGD's 0.20% 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%.

Dividends

PABU vs. ESGD - Dividend Comparison

PABU's dividend yield for the trailing twelve months is around 1.09%, less than ESGD's 4.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ESGD iShares ESG Aware MSCI EAFE ETF	4.92%	3.60%	3.23%	3.02%	2.59%	2.75%	1.63%	2.57%	2.69%	2.65%	0.09%
PABU iShares Paris-Aligned Climate Optimized MSCI USA ETF	1.09%	0.90%	1.00%	1.06%	1.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PABU and ESGD in my portfolio?

PABU and ESGD have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PABU or ESGD?

PABU has higher volatility (5.97%) compared to ESGD (5.58%). In terms of maximum drawdown, PABU dropped -22.76% vs ESGD's -33.70%.

Which ETF is better, PABU or ESGD?

On 3-year performance, PABU leads with 18.02% vs 15.36% for ESGD. On fees, PABU is cheaper at 0.10% per year. On volatility, ESGD has been the lower-risk option at 5.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PABU or ESGD?

Over the 3-year period, PABU has performed better with a 18.02% return vs 15.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PABU or ESGD?

PABU is cheaper with a 0.10% expense ratio, compared with 0.20% for ESGD.

Which ETF pays a higher dividend yield, PABU or ESGD?

ESGD has the higher dividend yield at 4.92%, compared with 1.09% for PABU.

What is the main difference between PABU and ESGD?

PABU is categorized as Large Cap Blend Equities, while ESGD is Foreign Large Cap Equities. PABU tracks MSCI USA Climate Paris Aligned Benchmark Extended Select PAB Index (USD), while ESGD tracks MSCI EAFE Extended ESG Focus Index. Their fees differ too: 0.10% for PABU and 0.20% for ESGD.

Which has better risk-adjusted returns?

PABU currently has the higher Sharpe Ratio (1.50 vs 1.38), 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.