Vanguard ESG ETFs

September 20, 2018 (Updated October 23, 2018)

 

In response to investors' growing interest in environmental, social, and governance (ESG) issues, we are offering two new ESG ETFs to help you align your clients' investments with their personal values and beliefs. Vanguard ESG U.S. Stock ETF (ESGV) and Vanguard ESG International Stock ETF (VSGX) are among the lowest-cost, most broadly diversified, exclusionary-screened index products currently in the marketplace. These ETFs can serve as core equity building blocks in a balanced portfolio for those investors wishing to invest based on personal values and social conscience.

 Vanguard ESG U.S. Stock ETF (ESGV)Vanguard ESG International Stock ETF (VSGX)

Objective

Seeks to track the performance of a benchmark index that measures the investment return of large-, mid-, and small-capitalization stocks of U.S. companies and is screened for certain environmental, social, and corporate governance criteria.Seeks to track the performance of a benchmark index that measures the investment return of large-, mid-, and small-capitalization stocks of companies in emerging and developed markets outside the U.S. and is screened for certain environmental, social, and corporate governance criteria.
Investment approach
  • Seeks to track the performance of the FTSE US All Cap Choice Index, a market-cap-weighted index composed of large-, mid-, and small-cap U.S. stocks.
  • Is screened for certain environmental, social, and corporate governance criteria.
  • Specifically excludes stocks of companies in the following industries: adult entertainment, alcohol and tobacco, weapons, fossil fuels, gambling, and nuclear power.
  • Excludes stocks of companies that do not meet the standards of the UN Global Compact Principles and that do not meet certain diversity criteria.
  • Follows a passively managed, full-replication approach.
  • Seeks to track the performance of the FTSE Global All Cap ex US Choice Index, amarket-cap-weighted index composed of large-, mid-, and small-cap international stocks.
  • Is screened for certain environmental, social, and corporate governance criteria.
  • Specifically excludes stocks of companies in the following industries: adult entertainment, alcohol and tobacco, weapons, fossil fuels, gambling, and nuclear power.
  • Excludes stocks of companies that do not meet the standards of the UN Global Compact Principles and that do not meet certain diversity criteria.
  • Employs a passively managed, index-sampling strategy.
Benchmark

FTSE US All Cap Choice Index

FTSE Global All Cap ex US Choice Index

See for yourself

Our Compare products tool makes it easy to evaluate the costs and characteristics of ESGV and VSGX compared with the costs and characteristics of non-Vanguard funds.

Learn more about ESG ETFs

The resources below provide more information about the ESG ETFs.

news

News

Two new ESG index ETFs now open to all investors
This article provides key details on our ESG ETFs, including product design, benchmarks, and expense ratios.

Research paper

Advisor literature

Vanguard ESG ETFs: Help your clients make an impact
The product overview outlines our ESG ETFs, the exclusionary-screening approach used by their benchmark provider, and the role they can play in a portfolio. You will also find information to better understand the value of an ESG-focused investment approach.

View product brochure

Order product brochure

Research paper

Advisor literature

Retaining heirs: How to connect with your next generation of clients
The client landscape is rapidly shifting as money passes from one generation to the next. How can advisors keep assets that transfer to heirs and effectively engage younger investors? This brief outlines key areas for advisors to address, including helping heirs to invest according to their personal beliefs.

View brochure

Order brochure

Research paper

ESG, SRI, and impact investing: A primer for decision-making
Interest in ESG investing is growing, but the broad array of terms has produced investor confusion on what to do. Our research is designed to help investors make informed decisions with both their time and their capital.

View research

Order research

 

Advisor resource

Access FTSE Russell Global Choice microsite for more details on the FTSE Global Choice Index Series.

Note: When you use this feature, you'll leave advisors.vanguard.com and go to a third-party website. Vanguard accepts no responsibility for content on third-party sites or for the services provided. Also, please be aware that when you use services provided by a third-party site, you're subject to that site's terms of service and privacy rules, which you should review carefully.

Go to FTSE Russell Global Choice website »

Notes:

  • Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
  • All investing is subject to risk, including possible loss of principal.
  • Diversification does not ensure a profit or protect against a loss.
  • Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.
 

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