EFIV vs ESML

EFIVAState Street SPDR S&P 500 ESG ETF

ESMLBiShares ESG Aware MSCI USA Small-Cap ETF

In short

EFIV A screened S&P 500 that still looks like one. EFIV trims to about 300 names on ESG criteria but holds industry-group weights close to the parent index, for 0.10% a year.

ESML Most ESG funds stop at the S&P 500. ESML takes the same iShares screen down the cap ladder: roughly 900 smaller US companies, ranked on ESG profile, at a price below the category median.

Stated mandate

EFIV The Fund seeks to track an index of securities selected using environmental, social, and governance sustainability criteria while retaining industry-group weights broadly similar to the S&P 500 Index.

ESML The fund seeks to track an index of small-cap U.S. companies with favorable ESG profiles, aiming to provide ESG-focused core equity exposure.

Why people hold it

• EFIV Charges 0.10% a year, well under the 0.25% typical of its values-screened peer group.
• Keeps industry-group weights broadly similar to the S&P 500, so the screen changes which names you own more than which sectors.
• Tracks its declared index very tightly, one of the cleaner implementations in its cohort.
• Straightforward 1940 Act index fund from SPDR, running since 2020, distributing quarterly.

• ESML Small-cap ESG is a thin shelf. The other top-graded names in the category (SNPE, EFIV, XVV) are S&P 500 builds; ESML fishes in the part of the market they skip.
• 0.17% a year, under the 0.25% category median, for an index that holds roughly 900 names rather than a short list of screen survivors.
• Live since 2018, now a multi-billion-dollar fund paying quarterly, and one of the stronger implementations in its ESG peer group.

Worth knowing

• EFIV About 300 stocks, not 500. The screens remove names, so results can diverge from the headline S&P 500.
• Cheaper shelf-mates exist: XVV at 0.08% and ESGV at 0.09% undercut it on fee.
• Mid-size asset base and moderate trading volume, which can mean wider spreads than the mega-cap index giants.

• ESML These are small companies, so the ride is bumpier than the S&P 500-based ESG funds sitting next to it in the category.
• MSCI does the judging. The Extended ESG Focus index scores and re-weights companies rather than simply banning industries, so the holdings may not match your own definition.
• Volume is moderate, not the constant flow of the big large-cap ESG names, which matters more on large or hurried orders.

Full EFIV profile⁠

Full ESML profile⁠