Vanguard ESG Global All Cap UCITS ETF - ETF Review
Overall Assessment
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.
| Characteristic | ETF |
|---|---|
| Asset Manager | Vanguard |
| Accumulating Tickers | V3AA, V3AB |
| Distributing Tickers | V3AL, V3AM |
| Sustainability Strategy | SRI Only |
| ESG Rating Screening | No |
| Ethical (SRI) Screening | Yes |
| Number of ESG Exclusions | None |
| Number of SRI Exclusions | Very High |
| Planet Impact | Moderate (Excludes Sin Stocks) |
| Parent Benchmark | FTSE Global All Cap |
| Est. Diversification Reduction | 15% |
| Inception Date | Mar-21 |
| Expected Performance vs. Parent | Long-Term Underperformance |
| Income Distribution Types | Accumulating and Distributing |
| Domicile | Ireland |
| Currency Risk | Unhedged |
| Replication | Physical (Optimized Sampling) |
| Settlement Currencies | USD, EUR, GBP, CHF (both), MXN (accumulating only) |
| Total Expense Ratio | 0.24% |
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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash.
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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash.
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.
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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.
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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash.
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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash.
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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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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