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Vanguard ESG Fund Summary :: VEIGX, ESGV, VSGX, VFTAX, VCEB

by Ju.D 2022. 3. 24.
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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

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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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