ESGU vs USXF

ESGUAiShares ESG Aware MSCI USA ETF

USXFAiShares ESG Advanced MSCI USA 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.

USXF The strict end of the iShares US ESG shelf. It follows an MSCI index built on favorable ESG ratings plus deep exclusion screens, cutting the US large- and mid-cap market to about 300 names, and charges 0.10% to do it.

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.

USXF The fund seeks to track a U.S. large- and mid-cap equity index whose constituents have favorable environmental, social, and governance ratings and pass extensive controversial-activity screens.

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.

• USXF Charges 0.10% a year, under half the typical fee in its ESG-screened US peer group and below its bigger iShares sibling ESGU at 0.15%.
• The screens bite. The MSCI USA Choice ESG Screened Index asks for favorable ESG ratings and extensive controversial-activity exclusions, not a light tilt.ishares.com
• Ends up a focused book of about 300 US large- and mid-caps, so the screening shows up in what you actually own.
• A billion-dollar-plus iShares fund that pays quarterly, launched in 2020, with a plain index structure: no leverage, no options overlay.

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

• USXF Roughly 300 names against the full US market leaves real sector and single-stock gaps, and stretches where it moves differently from a broad index fund.
• Moderately traded rather than a headline-volume ETF, so spreads are worth a look on larger or hurried orders.
• ESG here is MSCI's definition, set by its ratings thresholds and exclusion lists, and index methodology can be revised over time.

Full ESGU profile⁠

Full USXF profile⁠