ESGV – Sustainability – Vanguard ESG US Stock ETF (2024)

FAQs

Is ESGV a good stock? ›

ESGV has a consensus rating of Moderate Buy which is based on 1003 buy ratings, 378 hold ratings and 46 sell ratings.

One key area of strength for Vanguard ESG US Stock ETF is its low Morningstar Portfolio Carbon Risk Score of 4.50 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation.

ESG investments surged by 53% to $2.7 trillion last year, showcasing a significant shift towards sustainable investing. Companies with strong ESG values exhibit resilience, outperforming during market downturns. ESG ETFs offer a simple means to align investments with values, potentially achieving competitive returns.

If companies fail to remain mindful of their ESG risks, it could result in a lack of interest from future investors, losing loyal customers who have grown more aware of societal and environmental issues, and potentially ignoring the requirement to comply with current environmental regulations – which can result in ...

Fortunately, your financial plan may better support your ethical priorities if you focus on ESG investments. So, if environmental and social responsibility are important to you, ESG investments could be worth pursuing in the coming years, even if the returns are slightly lower than other investments.

However, there are also some cons to ESG investing. First, ESG funds may carry higher-than-average expense ratios. This is because ESG investing requires more research and due diligence, which can be costly. Second, ESG investing can be subjective.

Can you make money from ESG? ›

Studies have shown that ESG-focused companies often demonstrate greater long-term resilience and profitability, making them attractive investment options.

ESG-focused institutional investment seen soaring 84% to US$33.9 trillion in 2026, making up 21.5% of assets under management: PwC report. Jakarta, 22 December 2022 - Asset managers globally are expected to increase their ESG-related assets under management (AuM) to US$33.9tn by 2026, from US$18.4tn in 2021.

There's growing evidence that strong ESG practices can lead to long-term financial benefits for companies. On top of that, ESG investing also helps you to align your portfolio with your values and contribute to a more sustainable future.

Companies with higher ESG ratings tend to be more competitive and have high quality management teams, driving strong returns.

Vanguard Utilities ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VPU is a sufficient option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market.

Overall Rating. Morningstar has awarded this fund 4 stars based on its risk-adjusted performance compared to the 1093 funds within its Morningstar Category.