AVSU vs ESGU

AVSUBAvantis Responsible U.S. Equity ETF

ESGUAiShares ESG Aware MSCI USA ETF

In short

AVSU Most ESG funds hand you a screened S&P 500. AVSU screens the whole US market, roughly 1,300 names across every size, then leans toward cheaper, more profitable companies. A quant tilt wearing a values filter, at 0.15%.

ESGU Screening out companies is easy; keeping the market's shape while you do it is the hard part. ESGU's index optimizes toward stronger ESG characteristics while targeting risk and return similar to the broad MSCI USA Index.

Stated mandate

AVSU Seeks long-term capital appreciation through a broad portfolio of U.S. companies across market capitalizations. The strategy applies ESG exclusions and emphasizes companies with lower valuations and higher profitability.

ESGU Seeks to track an index of large- and mid-cap U.S. companies selected for favorable environmental, social and governance (ESG) characteristics while seeking risk/return similar to the MSCI USA Index.

Why people hold it

• AVSU At 0.15%, it undercuts the median fee in its US ESG peer group, where the typical fund charges 0.25%.
• Roughly 1,300 holdings measured against the Russell 3000, so mid and small caps ride along, not just the S&P 500 names screened by peers like EFIV and XVV.
• The tilts are written into the mandate, not implied: ESG exclusions plus a stated emphasis on lower valuations and higher profitability.
• The portfolio lines up closely with what the prospectus describes, and it stands in the upper half of a crowded US ESG-and-values field.

• ESGU Not a screen-and-drop portfolio: the index optimizes toward better ESG characteristics while targeting risk and return similar to the broad MSCI USA Index.ishares.com
• 0.15% a year, below the typical fund in its US ESG group, spread across roughly 300 large- and mid-cap names rather than a narrow shortlist.
• Running since 2016, a multi-billion-dollar iShares fund that pays quarterly and sits in the top quartile of a crowded US ESG peer group.

Worth knowing

• AVSU Thinly traded next to the category's household names, so spreads and order size carry more weight here.
• The value and profitability tilts, plus smaller companies, mean it can behave differently from a screened S&P 500 fund for long stretches, in either direction.
• "Responsible" means Avantis's own ESG exclusion rules, not an industry standard. The fund opened in 2022, so its live record is still young.

• ESGU Cheaper seats in the same row: XVV at 0.08%, ESGV at 0.09%, SNPE and EFIV at 0.10%, against 0.15% here.
• Market-like risk is the stated goal, so exclusions are lighter than a purist ESG fund and the holdings end up looking a lot like the broad US market.ishares.com
• MSCI's ratings decide who makes the cut, so the portfolio reflects one provider's definition of ESG, not an industry standard.ishares.com

Full AVSU profile⁠

Full ESGU profile⁠