What is the primary difference between ESGD and ESGU?

The primary distinction lies in their geographic focus. Fund A (ESGD) tracks the MSCI EAFE Index, targeting developed markets outside the United States and Canada, including Europe, Australasia, and the Far East. Conversely, Fund B (ESGU) tracks the MSCI USA Index, providing exposure exclusively to large and mid-capitalisation companies within the United States. Both are 'ESG Aware' strategies, meaning they screen for environmental, social, and governance criteria while aiming to match the performance of their respective broad-market benchmarks. This structural difference dictates their distinct roles within a diversified portfolio.

How do the expense ratios of ESGD and ESGU compare?

Fund A (ESGD) has an annual expense ratio of 0.20%, while Fund B (ESGU) charges 0.15%. This creates a 0.05 percentage point difference in cost. While this gap appears small, it represents a 33% increase in the fee paid by ESGD investors relative to ESGU. For every £1,000 invested, ESGD costs £2.00 per year, whereas ESGU costs £1.50. Over extended holding periods, even minor fee variations can influence net returns due to the compounding effect of costs. Investors should weigh this fee difference against the specific market access and potential yield offered by each fund.

What does the term 'ESG Aware' signify in these fund names?

'ESG Aware' indicates that the investment strategy incorporates Environmental, Social, and Governance factors to screen or score securities relative to its parent benchmark. For both Fund A (ESGD) and Fund B (ESGU), this means excluding companies involved in controversial activities, such as tobacco or severe environmental violations, and favouring firms with higher ESG ratings. Crucially, it is not a pure sustainability fund seeking to maximise ESG scores; rather, it aims to track the underlying index performance while managing specific ESG risks. Therefore, their primary objective remains capital growth in line with the respective market, not exclusive impact investing.

How do the dividend yields of ESGD and ESGU differ?

Fund A (ESGD) currently reports a dividend yield of 3.25%, while Fund B (ESGU) has a significantly lower yield of 0.92%. This disparity reflects the differing payout cultures of their underlying markets. Developed international markets, which ESGD tracks, often have higher dividend payout ratios compared to the US market, which is dominated by tech-heavy growth companies like those in ESGU that may prioritise reinvestment or share buybacks over dividends. Investors seeking current income might find ESGD's higher yield more appealing, whereas ESGU's structure may favour capital appreciation driven by sector growth.

Do ESGD and ESGU have overlapping top holdings?

Based on available data, there are no overlapping top-10 holdings between the two funds. Fund B (ESGU) lists major US technology giants such as Nvidia (7.79%), Apple (7.39%), and Microsoft (5.35%) as its largest positions. Fund A (ESGD)'s specific top holdings are not currently available for review, but as it tracks the MSCI EAFE Index, it inherently excludes US-based companies. This lack of overlap suggests that holding both funds simultaneously would provide diversification across different geographies rather than duplicating the same company exposure, assuming no indirect multi-national US exposure in ESGD's undisclosed holdings.

What are the asset under management (AUM) figures for each fund?

Fund B (ESGU) manages substantial assets of $18.0 billion, while Fund A (ESGD) holds $12.0 billion. Both funds command significant scale, which generally enhances liquidity and ensures tighter bid-ask spreads for investors during trading hours. High AUM can also contribute to lower relative operational costs, although the expense ratios remain as stated. Investors might interpret the higher AUM of ESGU as an indicator of stronger demand for US-focused ESG strategies in the current market environment, whereas ESGD provides robust access to international markets with a considerable asset base of its own.

What are the inception dates for these funds?

Fund A (ESGD) launched on June 28, 2016, whereas Fund B (ESGU) began trading on December 1, 2016. Both funds have therefore been active for over a decade, providing investors with a reasonably long performance history to evaluate. This tenure allows for a comparison of how each strategy has navigated different market cycles, including periods of rising interest rates, global pandemics, and tech-driven bull markets. The slight difference in inception dates means their historical track records cover nearly identical market conditions, facilitating a direct comparison of their relative effectiveness in tracking their respective indices.

What sectors do these funds primarily represent?

Fund B (ESGU) is heavily weighted towards the Information Technology sector, with major holdings in tech giants like Nvidia and Apple. This reflects the dominance of the technology industry in the US equity market. Fund A (ESGD), tracking the MSCI EAFE Index, is categorised as Foreign Large Blend, which typically includes a broader spread of sectors such as Financials, Industrials, Healthcare, and Consumer Discretionary across developed international economies. However, specific sector weights for ESGD are not currently available. Investors must recognise that ESGU carries concentrated tech risk, while ESGD offers sector diversification across global markets.

Is there missing data for either fund that investors should note?

Yes, several key metrics are listed as 'not available' for both funds. Specifically, the exact index tracking details, sector weights, and top holdings for Fund A (ESGD) are currently inaccessible. Similarly, the precise index tracking methodology and sector weights for Fund B (ESGU) are also not provided. While Fund B's top holdings are disclosed, the lack of sector weight data for both funds hinders a granular risk assessment. Investors should consult the official issuer documentation or fact sheets for the most up-to-date and comprehensive breakdown of holdings and sector exposures before making decisions.

How can an investor combine ESGD and ESGU effectively?

Investors often combine these funds to achieve comprehensive global equity exposure. A typical strategy involves allocating to both to balance US growth potential, represented by Fund B (ESGU)'s tech-heavy composition, with the income-oriented and diversified international exposure offered by Fund A (ESGD)'s higher 3.25% yield. This approach diversifies geographic risk, currency exposure, and sector concentration. Since there are no shared top-10 holdings, the funds are largely complementary. Asset allocation would depend on an investor's home country bias, risk tolerance, and preference for income versus growth, without one being inherently superior to the other.

What type of investing goal is typically associated with ESGU?

Fund B (ESGU) is typically associated with goals focused on long-term capital appreciation through exposure to large-cap US companies. Given its heavy concentration in technology and innovation-driven sectors, it often appeals to investors seeking growth potential while adhering to ESG screening criteria. The relatively low dividend yield of 0.92% suggests it is less suited for immediate income generation but aligns with strategies that prioritise the reinvestment of earnings and share price growth. It serves as a core holding for those believing in the continued strength of the US equity market's leading industries.

What type of investing goal is typically associated with ESGD?

Fund A (ESGD) is often linked to objectives centred on international diversification and income generation. With a dividend yield of 3.25%, it provides a higher income stream compared to its US counterpart, making it attractive for investors seeking cash flow alongside equity growth. Tracking developed markets outside the US allows for exposure to different economic cycles, regulatory environments, and mature industries such as global financials and industrials. This fund is suitable for those looking to reduce geographic concentration risk in a primarily US-centric portfolio while maintaining an ESG-aware approach to developed international markets.

ESGD vs ESGU

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare iShares ESG Aware MSCI EAFE ETF (ESGD) and iShares ESG Aware MSCI USA ETF (ESGU) on fees, holdings, dividends and market tracking. ESGD costs 0.20% with 3.25% yield, while ESGU costs 0.15% with 0.92% yield. Review how each fund tracks its respective geography and the differences in top holdings. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

ESGD

Metric

ESGU

0.20%

Expense Ratio

0.15%

3.25%

Dividend Yield

0.92%

$11.99B

Net Assets

$17.96B

357

Holdings

273

Jun 28, 2016

Inception Date

Dec 1, 2016

–

Index Tracked

–

Foreign Large Blend

Fund Category

Large Blend

ESGU costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Investment Analysis

ESGD

Pros

The fund offers access to developed international markets through a blend style category for global diversification.
It provides substantial assets under management of twelve billion dollars ensuring liquidity for investors.
A dividend yield of three point two five percent offers income potential from overseas equities.

Considerations

The expense ratio of zero point two zero percent is higher than many core international ETFs.
Key index tracking details and sector weights are currently not available for transparency.
Top holdings data is missing making it difficult to assess specific company concentration.

ESGU

Pros

It offers low-cost exposure to large blend US companies with an expense ratio of fifteen basis points.
Significant assets under management of eighteen billion dollars suggest strong liquidity and trading volume.
Diversified across ten top holdings without any shared exposure with the international fund.

Considerations

A low dividend yield of zero point nine two percent limits immediate income generation for investors.
Specific sector weights and index methodology details are not currently available for review.
Top holdings show concentration in technology giants like Nvidia and Apple increasing sector risk.

About ESGD and ESGU

ESGD (ESGD)

The iShares ESG Aware MSCI EAFE ETF (ESGD) offers investors exposure to large- and mid-cap companies in developed markets outside the United States and Canada. This fund selects stocks based on their Environmental, Social, and Governance (ESG) performance, aiming to align with sustainable investment principles while tracking a broad international index. With an expense ratio of 0.20%, it provides a cost-effective way to access global equity markets. The fund holds 357 stocks, reflecting a diversified approach to foreign large blend equities. It is important to note that ESG criteria can vary, and the inclusion of these factors may influence performance differently compared to traditional benchmarks. Investors should consider that international markets carry currency and geopolitical risks, and while the fund has a reported dividend yield of 3.25%, income levels can fluctuate. As with all investments, values can rise and fall, and returns are not guaranteed.

ESGU (ESGU)

The iShares ESG Aware MSCI USA ETF offers investors exposure to a portfolio of large and mid-cap U.S. stocks selected for their Environmental, Social, and Governance (ESG) profiles. Rather than excluding companies entirely, this fund aims to reflect the characteristics of the broader U.S. equity market while tilting towards firms with stronger ESG metrics. With a low expense ratio of 0.15%, it seeks to be a cost-efficient option for those interested in sustainable investing themes. The fund currently holds 273 stocks, providing diversification across major American industries. While it has a dividend yield of approximately 0.92%, income is not the primary focus. Investors should remember that ESG scores are based on third-party data and methodologies, which can vary. As with all equity funds, capital values can rise and fall, and past performance does not guarantee future results. This ETF is designed for those looking to align their investments with sustainability criteria without abandoning exposure to the U.S. market's leading companies.

Buy ESGD or ESGU in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

ESGD vs ESGU

Fund Snapshot

Investment Analysis

ESGD

Pros

Considerations

ESGU

Pros

Considerations

About ESGD and ESGU

Buy ESGD or ESGU in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is the primary difference between ESGD and ESGU?

How do the expense ratios of ESGD and ESGU compare?

What does the term 'ESG Aware' signify in these fund names?

How do the dividend yields of ESGD and ESGU differ?

Do ESGD and ESGU have overlapping top holdings?

What are the asset under management (AUM) figures for each fund?

What are the inception dates for these funds?

What sectors do these funds primarily represent?

Is there missing data for either fund that investors should note?

How can an investor combine ESGD and ESGU effectively?

What type of investing goal is typically associated with ESGU?

What type of investing goal is typically associated with ESGD?

About ESGD and ESGU

Fund Snapshot