What's ESG investing?
ESG investing, which typically assesses the factors listed below, offers a way for you to invest in funds that consider environmental, social, and governance issues. You may hear the term used interchangeably with "socially responsible investing (SRI)" and "sustainable investing."
Discover Vanguard's ESG lineup
You can build or complement your portfolio with funds that reflect your personal preferences. Some of our funds are indexed and follow an exclusionary strategy that omits companies that don't meet certain ESG criteria. We also have 3 active funds that invest in companies with leading or improving ESG practices.
We embrace the same investing principles across all our products: clear goals, broad diversification, low costs, and a long-term view.
Fund | Investment type | Management style | Geographic coverage | |
ESGV ESG U.S. Stock ETF |
ETF | Indexed (approx. 1,500 stocks) |
U.S. only | |
VFTAX FTSE Social Index Fund |
Mutual fund | Indexed (approx. 500 stocks) |
U.S. only | |
VSGX ESG International Stock ETF |
ETF | Indexed (over 6,000 stocks) |
International only | |
VCEB ESG U.S. Corporate Bond ETF |
ETF |
Indexed (over 2,700 bonds) |
U.S. only | |
VBPIX Baillie Gifford Global Positive Impact Stock Fund |
Mutual fund |
Actively managed (approx. 25-50 stocks) |
U.S. and international | |
VEOIX Global Environmental Opportunities Stock Fund |
Mutual fund |
Actively managed (approx. 25 stocks) |
U.S. and international | |
VEIGX Global ESG Select Stock Fund |
Mutual fund | Actively managed (approx. 40-50 stocks) |
U.S. and international |
Fund
ESGV
ESG U.S. Stock ETF
Investment type
ETF
Management style
Indexed (approx. 1,500 stocks)
Geographic coverage
U.S. only
Fund
VFTAX
FTSE Social Index Fund
Investment type
Mutual fund
Management style
Indexed (approx. 500 stocks)
Geographic coverage
U.S. only
Fund
VSGX
ESG International Stock ETF
Investment type
ETF
Management style
Indexed (approx. 3,000-4,000 stocks)
Geographic coverage
International only
Fund
VCEB
ESG U.S. Corporate Bond ETF
Investment type
ETF
Management style
Indexed (approx. 200-300 bonds)
Geographic coverage
U.S. only
Fund
VBPIX
Baillie Gifford Global Positive Impact Stock Fund
Investment type
Mutual fund
Management style
Actively managed (approx. 25-50 stocks)
Geographic coverage
U.S. and international
Fund
VEOIX
Global Environmental Opportunities Stock Fund
Investment type
Mutual fund
Management style
Actively managed (approx. 25 stocks)
Geographic coverage
U.S. and international
Fund
VEIGX
Global ESG Select Stock Fund
Investment type
Mutual fund
Management style
Actively managed (approx. 40-50 stocks)
Geographic coverage
U.S. and international
All investing is subject to risk, including the possible loss of the money you invest.
Diversification does not ensure a profit or protect against a loss.
ESG funds are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the index provider or advisor, as applicable, for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other funds screened for ESG criteria. The index provider or advisor’s assessment of a company, based on the company’s level of involvement in a particular industry or their own ESG criteria, may differ from that of other funds or an investor’s assessment of such company. As a result, the companies deemed eligible by the index provider or advisor may not reflect the beliefs and values of any particular investor and may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. Successful application of the screens will depend on the index provider or advisor's proper identification and analysis of ESG data. The advisor may not be successful in assessing and identifying companies that have or will have a positive impact or support a given position. In some circumstances, companies could ultimately have a negative or no impact or support of a given position.
For more information about Vanguard funds or ETFs, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.