PABU vs. ESGV

Last updated Jun 23, 2026

PABU (iShares Paris-Aligned Climate Optimized MSCI USA ETF) and ESGV (Vanguard ESG U.S. Stock ETF) are both Large Cap Blend Equities funds - PABU tracks the MSCI USA Climate Paris Aligned Benchmark Extended Select PAB Index (USD) while ESGV tracks the FTSE US All Cap Choice Index. Both are passively managed. Over the past 3 years, PABU returned 17.67%/yr vs 21.19%/yr for ESGV. Their correlation of 0.94 suggests significant overlap in exposure. PABU charges 0.10%/yr vs 0.09%/yr for ESGV.

Performance

PABU vs. ESGV - 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 Vanguard ESG U.S. Stock ETF (ESGV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PABU achieves a 4.30% return, which is significantly lower than ESGV's 9.39% return.

PABU

• 1D: -0.85%
• 1M: -2.15%
• YTD: 4.30%
• 6M: 3.73%
• 1Y: 18.73%
• 3Y*: 17.67%
• 5Y*: —
• 10Y*: —

ESGV

• 1D: -0.51%
• 1M: 0.39%
• YTD: 9.39%
• 6M: 8.78%
• 1Y: 26.60%
• 3Y*: 21.19%
• 5Y*: 12.10%
• 10Y*: —

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

PABU vs. ESGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
PABU iShares Paris-Aligned Climate Optimized MSCI USA ETF	4.30%	13.08%	24.84%	29.51%	-15.45%
ESGV Vanguard ESG U.S. Stock ETF	9.39%	16.48%	24.69%	30.79%	-18.04%

Correlation

The correlation between PABU and ESGV is 0.96 - 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	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (All Time) Calculated using the full available price history since Feb 11, 2022	0.94

The correlation between PABU and ESGV has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

PABU vs. ESGV - Sectors Allocation Comparison

Sectors	PABU	ESGV
Technology	52.4%	43.0%
Real Estate	16.4%	2.6%
Communication Services	8.4%	12.2%
Financial Services	6.9%	11.4%
Consumer Cyclical	6.2%	11.7%
Healthcare	5.6%	9.5%
Utilities	1.6%	0.2%
Industrials	1.6%	4.2%
Energy	0.8%	0.1%
Basic Materials	0.5%	1.8%
Consumer Defensive	-	3.6%

Return for Risk

PABU vs. ESGV — Risk / Return Rank

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

PABU

PABU Risk / Return Rank: 35
PABU Sharpe Ratio Rank: 39
PABU Sortino Ratio Rank: 36
PABU Omega Ratio Rank: 37
PABU Calmar Ratio Rank: 29
PABU Martin Ratio Rank: 33

ESGV

ESGV Risk / Return Rank: 55
ESGV Sharpe Ratio Rank: 59
ESGV Sortino Ratio Rank: 56
ESGV Omega Ratio Rank: 57
ESGV Calmar Ratio Rank: 48
ESGV Martin Ratio Rank: 57

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. ESGV - 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 Vanguard ESG U.S. Stock ETF (ESGV). 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	ESGV	Difference
Sharpe ratio: Return per unit of total volatility	1.33	1.90	-0.57
Sortino ratio: Return per unit of downside risk	1.83	2.58	-0.75
Omega ratio: Gain probability vs. loss probability	1.24	1.34	-0.10
Calmar ratio: Return relative to maximum drawdown	1.40	2.30	-0.90
Martin ratio: Return relative to average drawdown	4.73	9.65	-4.91

PABU vs. ESGV - Sharpe Ratio Comparison

The current PABU Sharpe Ratio is 1.33, which is lower than the ESGV Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of PABU and ESGV, 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. ESGV - Drawdown Comparison

The maximum PABU drawdown since its inception was -22.76%, smaller than the maximum ESGV drawdown of -33.66%. Use the drawdown chart below to compare losses from any high point for PABU and ESGV.

Drawdown Indicators

	PABU	ESGV	Difference
Max Drawdown Largest peak-to-trough decline	-22.76%	-33.66%	+10.90%
Max Drawdown (1Y) Largest decline over 1 year	-13.40%	-11.60%	-1.80%
Max Drawdown (3Y) Largest decline over 3 years	-20.85%	-20.41%	-0.44%
Max Drawdown (5Y) Largest decline over 5 years	—	-28.81%	—
Current Drawdown Current decline from peak	-5.88%	-2.09%	-3.79%
Average Drawdown Average peak-to-trough decline	-5.62%	-6.40%	+0.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.97%	2.76%	+1.21%

Volatility

PABU vs. ESGV - Volatility Comparison

iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) has a higher volatility of 6.19% compared to Vanguard ESG U.S. Stock ETF (ESGV) at 5.40%. This indicates that PABU's price experiences larger fluctuations and is considered to be riskier than ESGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PABU	ESGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.19%	5.40%	+0.79%
Volatility (6M) Calculated over the trailing 6-month period	11.49%	11.18%	+0.31%
Volatility (1Y) Calculated over the trailing 1-year period	14.19%	14.08%	+0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.76%	18.47%	+0.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.76%	20.60%	-1.84%

PABU vs. ESGV - Expense Ratio Comparison

PABU has a 0.10% expense ratio, which is higher than ESGV's 0.09% 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

PABU vs. ESGV - Dividend Comparison

PABU's dividend yield for the trailing twelve months is around 0.94%, more than ESGV's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
ESGV Vanguard ESG U.S. Stock ETF	0.87%	0.91%	1.04%	1.16%	1.42%	0.95%	1.11%	1.27%	0.28%
PABU iShares Paris-Aligned Climate Optimized MSCI USA ETF	0.94%	0.90%	1.00%	1.06%	1.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PABU and ESGV in my portfolio?

With a correlation of 0.96, PABU and ESGV 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, PABU or ESGV?

PABU has higher volatility (6.19%) compared to ESGV (5.40%). In terms of maximum drawdown, PABU dropped -22.76% vs ESGV's -33.66%.

Which ETF is better, PABU or ESGV?

On 3-year performance, ESGV leads with 21.19% vs 17.67% for PABU. On fees, ESGV is cheaper at 0.09% per year. On volatility, ESGV has been the lower-risk option at 5.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PABU or ESGV?

Over the 3-year period, ESGV has performed better with a 21.19% return vs 17.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PABU or ESGV?

ESGV is cheaper with a 0.09% expense ratio, compared with 0.10% for PABU.

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

PABU has the higher dividend yield at 0.94%, compared with 0.87% for ESGV.

What is the main difference between PABU and ESGV?

PABU tracks MSCI USA Climate Paris Aligned Benchmark Extended Select PAB Index (USD), while ESGV tracks FTSE US All Cap Choice Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for PABU and 0.09% for ESGV.

Which has better risk-adjusted returns?

ESGV currently has the higher Sharpe Ratio (1.90 vs 1.33), 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.