ESGU vs VOO: Head-to-Head Comparison
ESGU vs VOO: iShares ESG Aware MSCI USA ETF has an expense ratio of 0.15% while Vanguard S&P 500 ETF charges 0.03%. ESGU holds 320 securities vs VOO's 503. 5-year returns: 14.00% vs 15.80%.
Last updated: April 2026
ESG
Quick Verdict
VOO edges out ESGU with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | ESGU | VOO |
|---|---|---|
| Expense Ratio | 0.15% | 0.03% |
| AUM | $13.0B | $560.0B |
| Dividend Yield | 1.30% | 1.30% |
| Holdings | 320 | 503 |
| 1-Year Return | 22.00% | 26.70% |
| 5-Year Return (Ann.) | 14.00% | 15.80% |
| 10-Year Return (Ann.) | 12.00% | 13.30% |
| Beta | 1.00 | 1.00 |
| P/E Ratio | 23.5 | 25.8 |
ESGU 5-year annualized return is 14.00% compared to VOO's 15.80%. Over 10 years, ESGU returned 12.00% vs VOO's 13.30%.
View data table
| Period | ESGU Return | VOO Return |
|---|---|---|
| YTD | 8.00% | 3.20% |
| 1 Year | 22.00% | 26.70% |
| 3 Year | 9.00% | 11.20% |
| 5 Year | 14.00% | 15.80% |
| 10 Year | 12.00% | 13.30% |
Key Differences Between ESGU and VOO
ESGU (iShares ESG Aware MSCI USA ETF) is a esg/us equity fund managed by BlackRock. ESGU tracks a broad index of US stocks that have been screened for positive environmental, social, and governance characteristics. It offers exposure to large- and mid-cap American companies while excluding those involved in controversial weapons, tobacco, and thermal coal. This fund is a straightforward way to invest in the US stock market with a socially responsible tilt.
VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.
The most notable differences are in fees (0.15% vs 0.03%), number of holdings (320 vs 503), and 5-year returns (14.00% vs 15.80%).
ESGU vs VOO multi-factor comparison: ESGU has a 0.15% expense ratio, 14.00% 5-year return, 320 holdings, 1.00 beta, and 1.30% yield. VOO has 0.03% expense ratio, 15.80% 5-year return, 503 holdings, 1.00 beta, and 1.30% yield.
View data table
| Metric | ESGU | VOO |
|---|---|---|
| Expense Ratio | 0.15% | 0.03% |
| 5-Year Return | 14.00% | 15.80% |
| Holdings | 320 | 503 |
| Beta | 1.00 | 1.00 |
| Dividend Yield | 1.30% | 1.30% |
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Holdings Overlap Analysis
82%
Holdings Overlap
ESGU and VOO share 82% of their top holdings. This means they are very similar funds — owning both would result in significant duplication in your portfolio. For most beginners, choosing one is sufficient.
ESGU and VOO share 82% of their top holdings (high overlap). ESGU has 320 total holdings and VOO has 503. Common holdings include AAPL, MSFT, NVDA.
View data table
| Metric | ESGU | VOO |
|---|---|---|
| Overlap | 82% | 82% |
| Unique Holdings | 18% | 18% |
| Total Holdings | 320 | 503 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
ESGU
Fee cost: $1,278
VOO
Fee cost: $258
Over 20 years, the fee difference amounts to $1,020 on a $10,000 investment. VOO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, ESGU (0.15% fee) grows to $45,332 while VOO (0.03% fee) grows to $46,351. The fee difference costs $1,019.
View data table
| Year | ESGU Value | VOO Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,592 | $14,673 |
| 10 | $21,291 | $21,529 |
| 15 | $31,067 | $31,590 |
| 20 | $45,332 | $46,351 |
Which One Should a Beginner Choose?
Choose ESGU if: You want investors who want broad us market exposure with a socially responsible approach, those looking for a core portfolio holding that aligns with esg values, buy-and-hold investors seeking low-cost sustainable equity exposure. It's managed by BlackRock with an expense ratio of 0.15%.
Choose VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.
Can You Own Both ESGU and VOO?
With 82% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.
Frequently Asked Questions
Should I buy ESGU or VOO?▾
VOO edges out ESGU with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors. However, both are solid options. ESGU is best for investors who want investors who want broad us market exposure with a socially responsible approach, while VOO is better suited for beginning investors looking for a simple core portfolio holding.
What is the difference between ESGU and VOO?▾
ESGU (iShares ESG Aware MSCI USA ETF) tracks esg/us equity investments with 320 holdings and a 0.15% expense ratio. VOO (Vanguard S&P 500 ETF) focuses on u.s. large-cap blend with 503 holdings at 0.03%. Their top holdings overlap by 82%.
Can I own both ESGU and VOO?▾
Since ESGU and VOO have 82% holdings overlap, owning both means significant duplication. Most beginners are better off choosing one.