Vanguard ESG U.S. Stock ETF

Frequently Asked Questions About ESGV

What does ESGV invest in?

This exchange-traded fund aims to mirror the performance of the FTSE US All Cap Choice Index, which comprises a broad spectrum of large, mid, and small-capitalization U.S. stocks, weighted by their market value. A core principle of the fund is its adherence to strict Environmental, Social, and Governance (ESG) criteria. Consequently, the fund systematically divests from companies engaged in activities deemed inconsistent with these principles. This includes entities involved in adult entertainment, alcohol, tobacco, cannabis, or gambling. It also excludes producers of controversial weapons (such as chemical, biological, cluster munitions, anti-personnel landmines, and nuclear armaments), conventional military weapons, and civilian firearms. Furthermore, companies primarily involved in nuclear power generation or fossil fuel industries (coal, oil, and gas), encompassing all facets from exploration and production to refining and distribution, are omitted. Beyond these specific sector exclusions, the index methodology, determined by FTSE, also screens out companies that do not meet established labor, human rights, environmental, and anti-corruption standards. Additionally, firms failing to satisfy at least two out of three specified diversity benchmarks—namely, having at least one woman on their board, implementing diversity policies, and operating diversity management systems—are also excluded. FTSE employs its proprietary methodologies to assess a company's involvement levels, revenue thresholds from certain activities, and the severity of controversies to apply these exclusions consistently. Operating under a passively managed, full-replication approach, the fund aims to meticulously replicate its target index. For 75% of its total assets, the fund observes specific concentration limitations: it generally avoids purchasing more than 10% of an issuer's outstanding voting securities or allocating more than 5% of its total assets to any single issuer. These restrictions, however, do not apply to U.S. government or agency obligations and may be waived when necessary to maintain alignment with the index composition.

What is the expense ratio of ESGV?

Vanguard ESG U.S. Stock ETF (ESGV) charges an expense ratio of 0.09%. This is the annual fee deducted from fund assets to cover management and operations.

How big is ESGV?

Vanguard ESG U.S. Stock ETF (ESGV) manages $13.20B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is ESGV actively managed or an index fund?

ESGV is a passive index fund — it tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (ESGV's is 0.09%) because there's no security selection cost.

When was ESGV launched?

Vanguard ESG U.S. Stock ETF (ESGV) launched in September 2018 and is managed by Vanguard.

How has ESGV performed?

ESGV's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.