ESGU vs STNC

ESGUAiShares ESG Aware MSCI USA ETF

STNCDHennessy Sustainable ETF

In short

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.

STNC Most ESG funds are a screened S&P 500 index for a few basis points. STNC takes the other road: an active, roughly 70-stock book built from a sustainability ranking, a machine-learning screen and a tail-risk optimizer, at 0.95%.

Stated mandate

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.

STNC The Fund seeks long-term capital appreciation. It is an actively managed ETF investing at least 80% of net assets plus investment borrowings in exchange-traded equity securities of U.S. issuers meeting sustainability and fundamental financial standards.

Why people hold it

• 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.

• STNC Three steps, not one: a rules-based sustainability ranking, a machine-learning screen, then an optimizer targeting tail risk and diversification. Positions target a 3.5% max, rebalanced quarterly.sec.gov
• Hennessy retired the fund's semi-transparent wrapper and renamed it in 2025, so holdings are now disclosed like any ordinary ETF.sec.gov
• Measures itself against the S&P 500 Equal Weight Index alongside the cap-weighted S&P 500, a fair yardstick for a position-capped portfolio of about 70 names.

Worth knowing

• 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

• STNC At 0.95%, the fee sits above the category's typical cost; index rivals XVV (0.08%) and EFIV (0.10%) screen the S&P 500 for a sliver of that.
• Thinly traded, so spreads and order size matter more here than with the category's household names.
• Active and model-driven: the prospectus flags model risk, and a 70-stock portfolio can drift a long way from broad ESG index funds.sec.gov

Full ESGU profile⁠

Full STNC profile⁠