Average Daily Volume
563.8K
Fund Overview
The iShares MSCI EAFE ESG Optimized ETF (ESGD) is an exchange-traded fund that seeks to track the investment results of the MSCI EAFE ESG Optimized Index. This index is designed to provide exposure to large- and mid-cap companies in developed markets outside of North America, while incorporating environmental, social, and governance (ESG) criteria. The fund excludes companies involved in controversial industries such as tobacco, weapons, and fossil fuels, and aims to overweight companies with strong ESG profiles. ESGD offers investors a way to align their investments with sustainability goals while maintaining broad international equity exposure.
- Asset Class
-
Equity
- Industry
-
Sustainable & ESG Investing
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.44 %
- Currency Hedged
-
No
- Portfolio Turnover
-
25 %
- Dividend Date
-
Why Invest in the ESGD ETF?
Potential Benefits
- Provides exposure to developed international markets with an ESG focus, appealing to socially conscious investors.
- Offers diversification benefits by investing in large- and mid-cap companies across multiple sectors and countries.
- Lower expense ratio compared to many actively managed ESG funds.
- Excludes companies involved in controversial industries, aligning with sustainable investment principles.
- Transparent and rules-based methodology tied to the MSCI ESG Optimized Index.
Potential Risks
- Concentration risk in certain regions or sectors due to ESG screening criteria.
- Underperformance relative to non-ESG benchmarks during periods when ESG factors are out of favor.
- Currency fluctuations may impact returns for U.S. investors.
- Limited exposure to emerging markets, which may offer higher growth potential.
- ESG criteria may exclude some high-performing companies, potentially limiting returns.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+5.1%
|
+4.3%
|
-8.3%
|
+5.7%
|
+2.4%
|
+0.9%
|
+1.8%
|
+1.7%
|
-3.2%
|
+0.1%
|
-
|
-
|
| 2025 |
+4.4%
|
+2.4%
|
+0.3%
|
+3.7%
|
+4.6%
|
+2.6%
|
-2.2%
|
+4.0%
|
+2.4%
|
+1.2%
|
+0.4%
|
+2.5%
|
| 2024 |
-0.4%
|
+2.7%
|
+3.4%
|
-3.2%
|
+5.2%
|
-1.4%
|
+2.4%
|
+3.3%
|
+1.0%
|
-5.3%
|
-0.4%
|
-2.8%
|
| 2023 |
+9.1%
|
-3.0%
|
+3.2%
|
+2.7%
|
-3.8%
|
+4.7%
|
+2.5%
|
-3.9%
|
-3.8%
|
-3.2%
|
+8.6%
|
+5.2%
|
| 2022 |
-3.8%
|
-3.6%
|
+0.1%
|
-6.3%
|
+1.5%
|
-8.6%
|
+5.5%
|
-6.3%
|
-9.5%
|
+5.8%
|
+13.3%
|
-1.9%
|
| 2021 |
-1.0%
|
+2.3%
|
+2.5%
|
+2.9%
|
+3.9%
|
-1.3%
|
+0.7%
|
+1.7%
|
-3.2%
|
+3.3%
|
-4.8%
|
+4.6%
|
| 2020 |
-2.7%
|
-7.2%
|
-14.4%
|
+5.6%
|
+5.4%
|
+3.4%
|
+2.2%
|
+4.9%
|
-2.3%
|
-3.7%
|
+14.6%
|
+5.1%
|
| 2019 |
+6.5%
|
+2.4%
|
+0.9%
|
+3.1%
|
-5.0%
|
+5.9%
|
-1.8%
|
-1.6%
|
+3.2%
|
+3.7%
|
+1.1%
|
+3.2%
|
| 2018 |
+5.0%
|
-4.8%
|
-0.7%
|
+1.6%
|
-2.1%
|
-1.3%
|
+2.7%
|
-2.1%
|
+1.1%
|
-8.2%
|
+0.7%
|
-5.4%
|
| 2017 |
+2.9%
|
+1.8%
|
+3.0%
|
+2.6%
|
+3.2%
|
+0.2%
|
+3.0%
|
+0.2%
|
+2.5%
|
+1.8%
|
+0.5%
|
+1.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
ALC
|
ALCON INC |
0.5 % |
|
SPOT
|
SPOTIFY TECHNOLOGY SA |
0.5 % |
|
WDS
|
WOODSIDE ENERGY GROUP LTD |
0.3 % |
|
CCEP
|
COCA-COLA EUROPACIFIC PARTNERS PLC |
0.2 % |
|
SE
|
SEA LTD ADR |
0.2 % |
|
CHKP
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD |
0.1 % |
|
CYBR
|
CYBERARK SOFTWARE LTD |
0.1 % |
|
QGEN
|
QIAGEN NV |
0.1 % |
|
AER
|
AERCAP HOLDINGS NV |
0.1 % |
|
RACE
|
FERRARI NV |
0.1 % |
Top 10 holdings shown, out of 376 total holdings.
Related ETFs: ESGD vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
ESGD tracks the MSCI EAFE ESG Optimized Index, which selects companies from developed markets outside of North America based on ESG criteria. The index methodology excludes companies involved in controversial business activities and overweight those with strong ESG profiles relative to their sector peers. The fund primarily holds common stocks of large- and mid-cap companies and is rebalanced quarterly to maintain alignment with the index. The approach is passive, aiming to replicate the index's performance rather than actively selecting securities.
Frequently Asked Questions
What regions does ESGD cover?
ESGD invests in developed markets outside of North America, including Europe, Australasia, and the Far East (EAFE).
How does ESGD select its holdings?
ESGD follows the MSCI EAFE ESG Optimized Index, which excludes companies involved in controversial industries and overweight those with strong ESG profiles within their sectors.
Is ESGD actively managed?
No, ESGD is a passively managed ETF that seeks to track the performance of its underlying index.
How often is ESGD rebalanced?
The fund is rebalanced quarterly to maintain alignment with its benchmark index.
What is the expense ratio for ESGD?
As of the last update, ESGD has an expense ratio of 0.20%, which is competitive among ESG-focused international ETFs.
Industry Overview
The iShares MSCI EAFE ESG Optimized ETF (ESGD) is part of the growing ESG (Environmental, Social, and Governance) investing space, which focuses on companies that meet certain sustainability criteria. ESG investing has gained significant traction as investors increasingly seek to align their portfolios with their values while still aiming for competitive returns. ESGD specifically targets developed markets outside of North America, providing exposure to companies that demonstrate strong ESG practices. This ETF is suitable for investors looking to combine international diversification with responsible investing principles.
Alternative Comparison
Compared to its closest peer, ESGE (which focuses on emerging markets), ESGD provides exposure to developed international markets with similar ESG criteria. ESGD also differentiates itself from broader international ETFs like EFA or IEFA by incorporating ESG screens, which may appeal to values-based investors. While ESGD has a slightly higher expense ratio than non-ESG counterparts like EFA, it offers the added benefit of ESG alignment. Unlike some actively managed ESG funds, ESGD provides transparent, rules-based exposure at a lower cost.
Issuer Overview
ESGD is issued by iShares, a leading provider of exchange-traded funds and a subsidiary of BlackRock, the world's largest asset manager. iShares offers a wide range of ETFs across various asset classes, including equities, fixed income, and alternatives, with a strong focus on index-based strategies. BlackRock's extensive resources and expertise in ESG investing contribute to the credibility and management of ESGD.
Conclusion
The iShares MSCI EAFE ESG Optimized ETF (ESGD) offers investors a way to gain exposure to developed international markets while incorporating ESG principles. With its focus on sustainability and exclusion of controversial industries, ESGD appeals to socially conscious investors seeking diversification outside of North America. While ESG screening may introduce some performance variability, the fund's low cost and transparent methodology make it a compelling option for long-term investors prioritizing both returns and responsible investing.
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