Average Daily Volume
790K
Fund Overview
The iShares ESG Aware MSCI USA ETF (ESGU) is an exchange-traded fund that seeks to track the investment results of the MSCI USA Extended ESG Focus Index. This index is designed to maximize exposure to environmental, social, and governance (ESG) factors while maintaining similar risk and return characteristics to the broader U.S. equity market. ESGU provides investors with a way to integrate ESG considerations into their portfolios without significantly deviating from traditional market performance. The fund holds large- and mid-cap U.S. stocks, with exclusions for companies involved in controversial industries such as tobacco, firearms, and thermal coal. ESGU is one of the largest and most liquid ESG-focused ETFs available, making it a popular choice for both individual and institutional investors seeking sustainable investment options.
- Asset Class
-
Equity
- Industry
-
Sustainable & ESG Investing
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.10 %
- Currency Hedged
-
No
- Portfolio Turnover
-
22 %
- Dividend Date
-
Why Invest in the ESGU ETF?
Potential Benefits
- Provides exposure to U.S. large- and mid-cap stocks with strong ESG profiles, aligning investments with sustainability goals.
- Maintains risk and return characteristics similar to the broader U.S. equity market, reducing tracking error concerns.
- Excludes companies involved in controversial industries, appealing to socially conscious investors.
- Highly liquid with low expense ratios, making it cost-effective for ESG-focused portfolios.
- Diversified holdings reduce single-stock risk while maintaining ESG compliance.
Potential Risks
- ESG screening may limit exposure to certain high-performing sectors, potentially underperforming in some market conditions.
- Concentration in large-cap U.S. stocks may lead to higher volatility during market downturns.
- ESG criteria are subjective and may not align with all investors' definitions of sustainability.
- Performance may lag non-ESG benchmarks if ESG factors fall out of favor with the market.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+1.2%
|
-1.0%
|
-5.0%
|
+10.7%
|
+5.5%
|
-0.7%
|
0.0%
|
+2.8%
|
-0.6%
|
+1.0%
|
-
|
-
|
| 2025 |
+2.7%
|
-1.8%
|
-5.9%
|
-0.7%
|
+6.5%
|
+5.2%
|
+2.2%
|
+2.0%
|
+3.5%
|
+2.8%
|
-0.1%
|
0.0%
|
| 2024 |
+1.3%
|
+5.1%
|
+3.2%
|
-4.1%
|
+4.8%
|
+3.5%
|
+1.5%
|
+2.3%
|
+2.3%
|
-1.2%
|
+6.5%
|
-2.6%
|
| 2023 |
+6.5%
|
-2.6%
|
+3.5%
|
+1.2%
|
+0.4%
|
+6.3%
|
+3.5%
|
-1.6%
|
-4.9%
|
-2.4%
|
+9.6%
|
+4.7%
|
| 2022 |
-6.0%
|
-3.2%
|
+3.6%
|
-9.2%
|
-0.1%
|
-8.4%
|
+9.5%
|
-4.0%
|
-9.5%
|
+8.0%
|
+5.6%
|
-6.0%
|
| 2021 |
-0.5%
|
+2.5%
|
+3.9%
|
+5.1%
|
+0.7%
|
+2.6%
|
+2.2%
|
+3.0%
|
-4.8%
|
+7.0%
|
-1.2%
|
+4.0%
|
| 2020 |
+0.6%
|
-8.0%
|
-12.5%
|
+13.3%
|
+5.2%
|
+2.6%
|
+5.9%
|
+7.5%
|
-4.0%
|
-2.3%
|
+11.7%
|
+3.8%
|
| 2019 |
+7.8%
|
+3.4%
|
+1.8%
|
+4.4%
|
-6.5%
|
+6.9%
|
+1.9%
|
-2.2%
|
+1.8%
|
+2.6%
|
+3.8%
|
+2.9%
|
| 2018 |
+5.7%
|
-3.5%
|
-2.5%
|
+0.2%
|
+2.4%
|
+1.3%
|
+3.2%
|
+3.1%
|
+0.8%
|
-6.8%
|
+1.6%
|
-8.8%
|
| 2017 |
+2.1%
|
+3.3%
|
+0.5%
|
+1.0%
|
+1.4%
|
+0.8%
|
+1.8%
|
+0.1%
|
+1.4%
|
+2.8%
|
+3.0%
|
+1.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
5.8 % |
|
MSFT
|
MICROSOFT CORP |
5.8 % |
|
NVDA
|
NVIDIA CORP |
5.5 % |
|
AMZN
|
AMAZON.COM INC |
3.7 % |
|
GOOG
|
ALPHABET INC CLASS C |
3.0 % |
|
META
|
META PLATFORMS INC CLASS A |
2.4 % |
|
AVGO
|
BROADCOM INC |
1.6 % |
|
TSLA
|
TESLA INC |
1.5 % |
|
LLY
|
ELI LILLY AND CO |
1.4 % |
|
JPM
|
JPMORGAN CHASE & CO |
1.3 % |
Top 10 holdings shown, out of 287 total holdings.
Related ETFs: ESGU vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
ESGU tracks the MSCI USA Extended ESG Focus Index, which selects U.S. large- and mid-cap stocks based on ESG criteria while maintaining sector weights similar to the broader market. The index excludes companies involved in controversial industries and applies an optimization process to maximize ESG scores. The fund holds physical securities (common stocks) rather than using derivatives, providing direct exposure to the underlying companies. ESGU is passively managed and rebalances quarterly to align with index changes. The fund's methodology aims to deliver ESG benefits without significantly deviating from traditional market performance.
Frequently Asked Questions
What types of companies does ESGU exclude?
ESGU excludes companies involved in controversial industries such as tobacco, firearms, and thermal coal, as well as those with severe ESG controversies.
How does ESGU differ from traditional index funds?
While traditional index funds track broad market indexes without ESG considerations, ESGU applies ESG screens and optimization to select companies with stronger sustainability profiles while maintaining similar sector weights.
Is ESGU actively managed?
No, ESGU is a passively managed ETF that seeks to track the performance of the MSCI USA Extended ESG Focus Index.
What is ESGU's expense ratio?
ESGU has a competitive expense ratio of 0.15%, making it one of the more cost-effective ESG ETF options.
Does ESGU pay dividends?
Yes, ESGU pays quarterly dividends, as it holds dividend-paying stocks from its underlying index.
Industry Overview
The iShares ESG Aware MSCI USA ETF (ESGU) is part of the growing ESG (Environmental, Social, and Governance) investing trend, which focuses on sustainable and responsible investment practices. ESG ETFs like ESGU allow investors to align their portfolios with their values while maintaining broad market exposure. The U.S. ESG market has expanded rapidly, driven by increasing demand from both retail and institutional investors. ESGU provides a way to invest in companies with strong ESG profiles without sacrificing diversification or liquidity. The fund's underlying index, the MSCI USA Extended ESG Focus Index, applies a rules-based methodology to select and weight stocks based on ESG criteria while maintaining sector balance relative to the broader market.
Alternative Comparison
Compared to other ESG ETFs like SUSA (iShares MSCI USA ESG Select) and ESGV (Vanguard ESG U.S. Stock ETF), ESGU takes a more inclusive approach by maintaining closer sector alignment with the broader market. While SUSA applies stricter ESG screens, resulting in a smaller universe of holdings, ESGU offers a balance between ESG focus and market-like diversification. ESGV, while similar in objective, has a slightly different index methodology and lower expense ratio. ESGU distinguishes itself with its larger asset base and higher liquidity, making it particularly attractive for institutional investors.
Issuer Overview
ESGU is issued by iShares, a division of BlackRock, the world's largest asset manager. iShares is a leading provider of ETFs, known for its broad range of low-cost, liquid investment products. BlackRock has been a strong advocate for sustainable investing, integrating ESG considerations across its product offerings. iShares' scale and expertise in index construction contribute to ESGU's efficiency and tracking accuracy.
Conclusion
The iShares ESG Aware MSCI USA ETF (ESGU) offers investors a practical way to incorporate ESG considerations into their portfolios while maintaining exposure to the U.S. equity market. Its balanced approach to ESG integration, combined with iShares' strong track record in ETF management, makes it a compelling choice for investors seeking sustainable investment options. While ESG investing carries certain risks and may underperform in some market conditions, ESGU's methodology aims to mitigate these concerns by preserving diversification and liquidity.
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