Vanguard ESG Global All Cap UCITS ETF – ETF Review

Vanguard ESG Global All Cap UCITS ETF - ETF Review

Overall Assessment

OUR RATING
4/5

This ETF is relatively well diversified and not impacted by financially material ESG Scores.

There may be some marginal risk-adjusted underperformance, given that investors’ taste for sustainability has driven up valuations, but overall it is a good fund to implement Ethical Screening into your portfolio.

ETF Snapshot

Below is an ETF Review that was performed by our team.

For each fund characteristic, we link to the correspondent guide to give you more context.

CharacteristicETF
Asset ManagerVanguard
Accumulating TickersV3AA, V3AB
Distributing TickersV3AL, V3AM
Sustainability StrategySRI Only
ESG Rating ScreeningNo
Ethical (SRI) ScreeningYes
Number of ESG ExclusionsNone
Number of SRI ExclusionsVery High
Planet ImpactModerate (Excludes Sin Stocks)
Parent BenchmarkFTSE Global All Cap
Est. Diversification Reduction15%
Inception DateMar-21
Expected Performance vs. ParentLong-Term Underperformance
Income Distribution TypesAccumulating and Distributing
DomicileIreland
Currency RiskUnhedged
ReplicationPhysical (Optimized Sampling)
Settlement CurrenciesUSD, EUR, GBP, CHF (both), MXN (accumulating only)
Total Expense Ratio0.24%
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Book a coaching session

Beginners often ask us:

  • How do I reach my goals  What investments do I need to take into consideration when e.g. Taking a Sabbatical, buying a House or saving for Early Retirement?
  • When should I invest – I fear that investing a lump sum in this market may have a negative impact on my returns. How can timing of buying ETFs affect my performance?

Advanced investors may avoid costly mistakes:

  • Challenge my Portfolio – Here is my portfolio – what am I missing? What could derail my strategy?  What can I do to protect my portfolio from shocks?
  • Help me quickly understand – What makes Inflation Linked Bonds outperform? Bond Ladder or Bond ETFs? Why do some investors add Small Cap Value stocks to their portfolios? How can I exclude Tobacco companies from my portfolio? Are the synthetic ETFs I screened safe?  What is Factor Investing?
Currently available in English, French and Polish.
 

Our Introductory Price Levels will end soon. Book your session before new prices apply.

By signing up for a financial coaching session you support our website and our investment research. Here are other ways to help.

What is Vanguard ESG Global All Cap UCITS ETF?

  • Vanguard ESG Global All Cap ETF UCITS is one of the most popular SRI ETFs in the World.
  • The ETF tracks the FTSE Global All Cap Choice index.
  • Vanguard ESG Global All Cap UCITS ETF does not exclude stocks based on ESG Ratings.
  • However, the ETF holdings are screened based on SRI criteria.
  • The ETF manager does not apply any caps to holdings.

Is Vanguard ESG Global All Cap UCITS ETF Safe?

  • Vanguard ESG Global All Cap UCITS ETF is managed by Vanguard, one of the largest Asset Managers in the World.
  • The custodian is Brown Brothers Harriman, one of the largest private investment banks in the United States.
  • Commercial risk is moderate given over $120m of Assets Under Management.

What are Vanguard ESG Global All Cap UCITS ETF Top Holdings?

  • Vanguard ESG Global All Cap UCITS ETF top 5 holdings include Apple, Microsoft, Amazon, Tesla and Alphabet.
  • Its top holdings do not diverge from its parent benchmark, the FTSE Global All Cap Index, which includes the same names amongst its top 5 holdings. The weights are impacted.
  • However, given its SRI screening, some TOP 10 stocks from its parent index are not included: ExxonMobil, Johnson & Johnson and Berkshire Hathaway.

Is Vanguard ESG Global All Cap UCITS ETF diversified?

  • The Vanguard ESG Global All Cap UCITS ETF is relatively well diversified.
  • Out of the parent benchmark 9,523 Equities, the ETF is modelled on 8,057 Equities.
  • The diversification reduction is about 15%.

What are Vanguard ESG Global All Cap UCITS ETF top sectors?

  • Vanguard ESG Global All Cap UCITS ETF Top 5 sectors include Technology, Financials, Healthcare, Consumer Discretionary and Telecom. Technology is the largest sector, accounting for around 25% of total market value.
  • The composition diverges from its parent benchmark, the FTSE Global All Cap Index, which includes Technology, Financials, Industrials, Consumer Discretionary and Healthcare. While Information Technology is the largest sector, it accounts only for around 20% of total market value. Industrials represent around 14%.

What ESG and SRI screenings are being applied?

  • Vanguard ESG Global All Cap UCITS ETF does not include Equities involved in UNGC Controversies, Conventional or Controversial Weapons, Tobacco, Thermal Coal, Unconventional Oil and Gas, Pornography, Gambling or Alcohol.
  • Vanguard ESG Global All Cap ETF does not apply any screening based on ESG Ratings.

What is Vanguard ESG Global All Cap UCITS ETF performance?

  • Vanguard ESG Global All Cap UCITS ETF is a relatively new fund. It was launched in March 2021.
  • Medium and long term performance comparisons against its parent benchmark are not available.

In which currencies is Vanguard ESG Global All Cap UCITS ETF available?

  • Vanguard ESG Global All Cap ETF is available in UCITS format in the following currencies: USD, EUR, GBP, MXN and CHF.
  • Vanguard ESG Global All Cap UCITS ETF includes accumulating and distributing share classes.

Similar Questions

How does Vanguard ESG Global All Cap ETF UCITS composition compare to popular iShares ESG ETFs?

Vanguard ESG Global All Cap ETF is the most popular ESG ETF from Vanguard, but it applies a different methodology than iShares. Read how their holdings differ.

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FROM OUR TEAM
Help Us Create Highest Quality Resources

This website was created to provide you with all necessary resources to invest without incurring any additional costs.

Servers, data, and software are some of our costs, just to name a few.  Most importantly, our time is the main resource to create great content. If you find that our guides helped you on the path to financial success, you may give us a hand by buying a coffee.

By buying us a coffee you support our website and our investment research. Here are other ways to help.

What will impact Vanguard ESG Global All Cap UCITS ETF expected returns?

Based on Economic Theory, expected returns will be impacted by both the fund’s factor exposure and investors’ taste for sustainability. Read how both of these factors may impact future returns.

 

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