Is ESGI a good ETF?
ESGI is the VanEck MSCI International Sustainable Equity ETF from VanEck. It tracks the MSCI World ex Australia ex Fossil Fuels Select SRI and Low Carbon Index. We classify it under Intl and ESG. With about $247 million in assets it is a solidly established fund. Listed on the ASX since 2021-03-09 (over 5 years ago).
On a total-return basis, ESGI has delivered 9.57% a year over 5 years (ranked 57th of 188 ETFs we track), 12.83% a year over 3 years (ranked 87th of 226 ETFs we track), and 6.91% a year over 1 year (ranked 156th of 308 ETFs we track).
The management fee of 0.55% is on the higher side. For comparison, similar ETFs average around 0.51%. If cost is your priority, IESG (0.09%), IWLD (0.15%), and VGS (0.18%) cover similar ground for less. It pays a moderate 2.75% yield.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 11.67%), meaning the kind of swings you'd expect from a diversified equity fund. Its 5-year Sharpe ratio of 0.57 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is very low at about 5% a year — the portfolio barely changes from year to year, much like a classic buy-and-hold index fund. Very little of its return is lost to trading or to capital gains being realised early, making it highly tax-efficient.
Things to watch
- Pricier than similar ETFs, which average around 0.51%.
- Cheaper alternatives exist: IESG, IWLD, and VGS.
What ESGI's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
Screens out, or tilts away from, companies on environmental, social and governance criteria — letting you align your money with your values.
- Market regime
- Performance broadly tracks the wider market, but can drift when excluded sectors (e.g. energy, mining, weapons, tobacco) have a strong or weak run. Fees are usually a touch higher.
- In a portfolio
- Suitable as a core or near-core holding for values-driven investors; just understand which sectors are excluded and why returns may diverge from the broad index.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.