As an investor, you might think abouth which ESG Fund fits your investing idea. Vanguard is one of the biggest invest company which has a tons of funds. Here are summary of Vanguard's ESG Funds--Mutual Funds and ETFs.
Before we start, Vanguard has two types of ESG strategies: Exclusionary and Inclusionary.
Exclusionary:
Excluding or underweighting certain sectors, countries, and securities. Example: Rulling out companies that manufacture or sell tobacco or guns.
Inclusionary:
Investing in sectors or companies with higher ESG ratings than their industry peers or other investment opportunities. Example: A mining company that is inherently risky environmentally but ranks high on managing the environmental impacts of its products and services.
Fund | Investment type | Expense ratio | ESG strategy | Management style | Geographic coverage |
VEIGX (Global ESG Select Stock Fund) |
Mutual fund | 0.55% | Inclusionary | Actively managed (approx. 40-50 stocks) | U.S. and international |
ESGV (ESG U.S. Stock ETF) |
ETF | 0.09% | Exclusionary | Indexed (approx. 1,500 stocks) | U.S. only |
VSGX (ESG International Stock ETF) |
ETF | 0.12% | Exclusionary | Indexed (approx. 3,000 – 4,000 stocks) | International only |
VFTAX (FTSE Social Index Fund) |
Mutual Fund | 0.14% | Exclusionary | Indexed (approx. 500 stocks) | U.S. only |
VCEB (ESG U.S. Corporate Bond ETF) |
ETF | 0.12% | Exclusionary | Indexed (approx. 200-300 bonds) | U.S. only |
There are various ESG funds at Vanguard, so based on this post and your idea, carefully decide which one you will buy.
Resource: How to choose ESG funds that are right for you, Vanguard
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