ESGV vs VTI: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between ESGV and VTI

ESGV (Vanguard ESG US Stock ETF) is a esg/us equity fund managed by Vanguard. ESGV provides access to a diversified portfolio of US stocks that have been screened to exclude companies in certain controversial industries like weapons, fossil fuels, and gambling. Managed by Vanguard, it offers one of the lowest expense ratios among ESG-focused funds. This makes it an attractive option for cost-conscious investors who want their portfolio to reflect responsible business practices.

VTI (Vanguard Total Stock Market ETF) is a u.s. total market fund managed by Vanguard. VTI gives you exposure to the entire U.S. stock market in one fund, covering large-cap, mid-cap, and small-cap companies. With over 3,600 holdings, it is one of the most diversified U.S. equity ETFs you can buy. Beginners often choose VTI over S&P 500 funds because it includes smaller companies that have historically provided additional growth potential.

The most notable differences are in fees (0.09% vs 0.03%), number of holdings (1,500 vs 3,644), and 5-year returns (13.00% vs 15.20%).

Holdings Overlap Analysis

ESGV and VTI share 67% of their top holdings. There is moderate overlap, so owning both provides some additional diversification but with diminishing returns.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $513 on a $10,000 investment. VTI saves you more in fees over time.

Which One Should a Beginner Choose?

Choose ESGV if: You want cost-conscious investors who want the cheapest esg equity fund available, vanguard loyalists looking to add esg screening to their portfolio, long-term investors wanting broad us exposure without fossil fuel companies. It's managed by Vanguard with an expense ratio of 0.09%.

Choose VTI if: You want investors who want complete u.s. stock market coverage in a single fund, beginners building a simple two-fund or three-fund portfolio, long-term investors who want small-cap exposure alongside large-caps. It's managed by Vanguard with an expense ratio of 0.03%.

Can You Own Both ESGV and VTI?

With 67% 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