Vanguard’s New Low-Cost ESG ETFs

Vanguard’s New Low-Cost ESG ETFs

Mutual fund giant Vanguard, based in Valley Forge, Pa., has expanded its suite of environmental, social and governance (ESG) funds with two low-cost ETFs. The Vanguard ESG U.S. Stock ETF (ESGV) and the Vanguard ESG International Stock ETF (VSGX) are commission-free and among the lowest cost ETFs in the industry.

The funds screen out companies participating in alcohol, tobacco, gambling, adult entertainment, weapons, fossil fuels and nuclear power. They also exclude companies failing to meet Vanguard’s diversity criteria and the U.N.’s Global Compact principles.

The ESGV fund covers over 80% of U.S. equity market capitalization. It has an expense ratio of 0.12% and tracks the FTSE U.S. All Cap Choice Index. The VSGX fund has an expense ratio of 0.15% and follows the FTSE Global All Cap ex U.S. Choice Index. It covers 70% of international equity market capitalization.

William Coleman and Gerard O’Reilly serve as portfolio managers for the ESGV fund while Christine Franquin and Scott Geiger manage the VSGX fund. Vanguard’s Equity Index Group, which oversees $3.1 trillion in assets worldwide, manages both funds.

New 401(k) Tech

There is new technology in the 401(k) space that helps advisors work with more clients.

Tolerisk, a provider of risk-tolerance assessment tools out of Philadelphia, created Tolerisk 401(k) to allow advisors to not only work with more clients but also to shift away from target-date funds.