Vanguard ESG International Stock ETF

Frequently Asked Questions About VSGX

What does VSGX invest in?

This exchange-traded fund (ETF) aims to replicate the investment performance of the FTSE Global All Cap ex US Choice Index. It builds its portfolio from a broad selection of international companies, spanning large, mid, and small market capitalizations, with individual holdings weighted by their market value. The fund employs a passively managed, index-sampling strategy, meticulously applying environmental, social, and corporate governance (ESG) screens to its holdings. It systematically excludes businesses involved in sectors such as adult entertainment, alcohol, tobacco, cannabis, and gambling. Additionally, it steers clear of companies linked to controversial weapons, including chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military systems, and civilian firearms. The fund also eschews companies significantly involved in nuclear power generation or those with substantial ties to fossil fuels, encompassing coal, oil, and natural gas. Beyond these industry-specific exclusions, the ETF filters out companies that fail to meet stringent standards for labor practices, human rights, environmental stewardship, and anti-corruption protocols. Furthermore, it avoids entities that do not satisfy specific diversity benchmarks, specifically those failing to meet at least two of the following diversity indicators: the presence of at least one woman on their board of directors, the establishment of clear diversity policies, and the implementation of diversity management systems. FTSE's rigorous index methodology evaluates prospective holdings based on their degree of involvement, revenue thresholds, and the precise nature of their operations within the excluded categories. This comprehensive screening spans all dimensions of prohibited activities, from direct production and distribution within entertainment or vice industries, to extraction, refining, transportation, and power generation across the fossil fuel sector, and the manufacturing or supply of components for various controversial weapons. FTSE's proprietary analytical framework assesses these intricate factors, including the severity of any controversies, to ensure the precise and nuanced application of its exclusion rules, recognizing that criteria may vary based on the specific activity or industry segment.

What is the expense ratio of VSGX?

Vanguard ESG International Stock ETF (VSGX) charges an expense ratio of 0.10%. This is the annual fee deducted from fund assets to cover management and operations.

How big is VSGX?

Vanguard ESG International Stock ETF (VSGX) manages $6.70B 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 VSGX actively managed or an index fund?

VSGX 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 (VSGX's is 0.10%) because there's no security selection cost.

When was VSGX launched?

Vanguard ESG International Stock ETF (VSGX) launched in September 2018 and is managed by Vanguard.

How has VSGX performed?

VSGX'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.