Is VESG a good ETF?
VESG is the Vanguard Ethically Conscious International Shares Index ETF from Vanguard. We classify it under Intl, Thematic, and ESG. With about $1.51 billion in assets it is a large, highly liquid fund.
On a total-return basis, VESG has delivered 11.79% a year over 5 years (ranked 32nd of 188 ETFs we track), 17.21% a year over 3 years (ranked 44th of 226 ETFs we track), and 11.79% a year over 1 year (ranked 103rd of 308 ETFs we track). Its strongest showing is over 5 years, where it sits in the top 17% of all ETFs we track.
The management fee of 0.18% is reasonable. That's cheaper than the typical 0.48% for similar ETFs. It pays a low 1.35% yield, so most of its return must come from capital growth.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 12.33%), meaning the kind of swings you'd expect from a diversified equity fund. Its 5-year Sharpe ratio of 0.72 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Top-17% returns over 5 years (32nd of 188 ETFs we track).
- Low-cost: a 0.18% management fee keeps more of the return in your pocket.
Things to watch
- Highly concentrated single-theme bet — keep the position size small.
Good to know
- Low 1.35% yield — this is a growth-oriented fund, not an income play.
What VESG'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.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
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.