Vanguard ESG U.S. Stock ETF (ESGV)

Review a detailed profile

Both ETFs (exchange-traded funds) screen out stocks of companies that don’t meet certain ESG criteria. Each ETF also maintains the diversification and low costs associated with index investing, making them attractive options for your core portfolio.

Vanguard ESG International Stock ETF (VSGX)

Review a detailed profile

And because they’re ETFs, both are available for as little as the price of 1 share.

Vanguard ESG U.S. Stock ETF (ESGV)

Vanguard ESG International Stock ETF (VSGX)

Each ETF could over- or underrepresent some industry sectors or geographic regions based on which companies pass the ESG screening. So performance could differ compared with the performance of the broader markets.

A deeper look into ESG criteria

Environmental, social, and governance screens evaluate company business practices to determine whether they’re sustainable and responsible investment options.

In this case, both ETFs exclude the stocks of companies that don’t meet certain criteria in connection with the production or manufacture of:

  • Adult entertainment.
  • Alcohol and tobacco products.
  • Conventional and controversial weapons (including civilian firearms).
  • Fossil fuels such as natural gas, oil, and coal.
  • Gambling activities.
  • Nuclear power.

The ETFs also steer clear of companies that don’t meet certain diversity criteria, as well as the labor, human rights, anti-corruption, and environmental standards defined by the Ten Principles of the U.N. Global Compact.

More diversified than any other ESG ETF

Each ETF offers more exposure to U.S. and international stock markets than any other ESG-screened investment currently available. In fact, each ETF will hold 2 to 6 times the number of stocks as its nearest U.S. or international counterpart.* And the ESG International Stock ETF is currently the only international ESG ETF that covers both developed and emerging markets.

Even with these exclusions, each ETF includes thousands of stocks covering more than 80% of the U.S. stock market and nearly 70% of the international stock market, respectively.

A history with ESG investing

A lot has changed since we launched our first ESG-screened index mutual fund, Vanguard FTSE Social Index Fund (VFTSX). Since then, the FTSE Social Index Fund has grown to become the largest ESG-screened index fund in the U.S.** In addition, more companies consistently report their ESG policies and related management practices, providing more standardization and transparency than ever before.

Vanguard ESG U.S. Stock ETF and Vanguard ESG International Stock ETF respond to investors’ changing social and personal beliefs while maintaining the low-cost, broadly diversified, and long-term approach you’ve come to expect from us.

Important differences between the FTSE Social Index Fund and the 2 new ESG ETFs

Fund

 Diversification

 Screening criteria

Expense
ratio

Minimum investment

FTSE Social Index Fund

Includes large- and mid-capitalization U.S. stocks.

Excludes companies involved in production and distribution of adult entertainment, alcohol and tobacco, weapons, nuclear power, or gambling.
Also excludes companies that lack certain diversity criteria or are involved in controversies related to the workplace, the environment, product safety, human rights, or corporate responsibility.

0.20%***

$3,000

ESG U.S. Stock ETF

Includes large-, mid-, and small-capitalization U.S. stocks.

Excludes companies involved in adult entertainment, alcohol and tobacco, weapons, fossil fuels, gambling, or nuclear power.

Also excludes companies that lack certain diversity criteria or violate principles related to human and labor rights, the environment, or corruption.

0.12% (estimated)

Price of 1 share

ESG International Stock ETF

Includes large-, mid-, and small-capitalization international stocks from both developed and emerging markets.

Applies the same ESG criteria as the ESG U.S. Stock ETF.

0.15% (estimated)

Price of 1 share

Expert management & exceptionally low costs

These new ETFs also feature:

Low expense ratios
Each ETF’s expense ratio is currently among the lowest in its respective category:†

  • 0.12% for Vanguard ESG U.S. Stock ETF, which is 74% lower than its peer-group average of 0.47%.
  • 0.15% for Vanguard ESG International Stock ETF, which is 68% lower than its peer-group average of 0.47%.

No commissions
As with all Vanguard ETFs, there’s no commission when you buy them through your Vanguard Brokerage Account.††

Trusted benchmark provider
Both ETFs will use benchmarks from FTSE Russell, which has had a dedicated sustainable investment team since 2001.

Review FTSE Russell’s approach to ESG screening

The ESG U.S. Stock ETF seeks to track the FTSE US All Cap Choice Index. The ESG International Stock ETF seeks to track the FTSE Global All Cap ex US Choice Index.

Expert management
Both ETFs are managed by Vanguard Equity Index Group, a team of more than 75 members that oversees more than $3.1 trillion in assets around the globe.**

Interested in investing?

Because these are ETFs, you’ll need a brokerage account to buy one.

*As of August 31, 2018. Source: Vanguard, using FTSE Russell and Morningstar data.
**As of August 31, 2018. Source: Vanguard.
***As of December 21, 2017.
†As of August 31, 2018. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc.
††Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF’s prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee.


Notes:

You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.

All investing is subject to risk, including the possible loss of the money you invest.

Diversification does not ensure a profit or protect against a loss.

Investments in stocks issued by non-U.S. companies and governments are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets.