ETF Evaluator:
iShares ESG Aware MSCI USA ETF (ESGU)
Follow This ETF
(as of Jul 31)
Best Performing in Large Blend Over the Last Year
| 82.8% | ARS Focused Opportunities Strategy ETF (AFOS) |
| 75.3% | Mohr Company Nav ETF (CNAV) |
| 44.9% | Invesco S&P 500® Momentum ETF (SPMO) |
| 43.7% | iShares MSCI USA Momentum Factor ETF (MTUM) |
| 41.7% | Inspire 100 ETF (BIBL) |
Risk
Index
Risk
Index
ETF Details
iShares ESG Aware MSCI USA ETF Overview
iShares ESG Aware MSCI USA ETF (ESGU) is a passively managed U.S. Equity Large Blend exchange-traded fund (ETF). iShares launched the ETF in 2016.
The investment seeks to track the investment results of the MSCI USA Extended ESG Focus Index.
The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents. The underlying index is an optimized equity index designed to reflect the equity performance of U.S. companies that have favorable environmental, social and governance ("ESG") characteristics, while exhibiting risk and return characteristics similar to those of the MSCI USA Index (the "parent index").
About iShares ESG Aware MSCI USA ETF (ESGU)
There are 4 members of the management team with an average tenure of 3.33 years: Jennifer Hsui (2016), Peter Sietsema (2025), Matt Waldron (2025) and Steven White (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: MSCI USA GR USD index with a weighting of 100% and MSCI USA EXTENDED ESG FOCUS GR USD index with a weighting of 100%. iShares ESG Aware MSCI USA ETF has 281 securities in its portfolio. The top 10 holdings constitute 35.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is considered to have an ESG focus with its investment selection and management.
iShares ESG Aware MSCI USA ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. iShares ESG Aware MSCI USA ETF has 0.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.5% There is 0.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares ESG Aware MSCI USA ETF has 0.2% of the portfolio in cash.
Assets Under Management
The fund has $17 billion in total assets, which is above the $13 billion average for the Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
ESGU Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares ESG Aware MSCI USA ETF expense ratio is low compared to funds in the Large Blend category. iShares ESG Aware MSCI USA ETF has an expense ratio of 0.15%, which is 64% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares ESG Aware MSCI USA ETF has a portfolio turnover rate of 24%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 162% for the Large Blend category.
Recently, in the month of June 2026, iShares ESG Aware MSCI USA ETF returned -0.6%, which earned it a grade of C, as the Large Blend category had an average return of -0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
iShares ESG Aware MSCI USA ETF has a trailing yield of 0.94%, which is below the 1.12% category average.
The fund normally distributes its income quarterly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
iShares ESG Aware MSCI USA ETF Grades
Year to date, the ETF has returned 10.5%, 0.2 percentage points better than the category, which translates into a grade of C. The fund has returned 22.4% over the past year (grade of B), 20.3% over the past three years (grade of C) and 12.2% per year over the past five years (grade of C).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about iShares ESG Aware MSCI USA ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
ESGU Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| ESGU Return (NAV) | -0.6% | 16.1% | 22.4% | 20.3% | 12.2% | na |
| ESGU Return (Price) | -0.7% | 16.0% | 22.2% | 20.3% | 12.1% | na |
| NAV +/- Price Return | 0.072% | 0.091% | 0.151% | 0.016% | 0.019% | na |
| Large Blend Avg | -0.0% | 14.5% | 20.9% | 18.8% | 11.8% | 14.1% |
| ESGU Grade (NAV) | C | B | B | C | C | na |
| +/- Category (NAV) | -0.6% | 1.6% | 1.5% | 1.4% | 0.4% | na |
| ESGU Tax-Cost Ratio | na | na | 0.3% | 0.3% | 0.3% | na |
ESGU Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ESGU Return (NAV) | 10.5% | 16.9% | 24.3% | 25.7% | -20.2% | 26.8% | 22.5% | 32.2% | -4.1% | 21.3% | na |
| ESGU Return (Price) | 10.4% | 16.9% | 24.3% | 25.8% | -20.3% | 26.9% | 22.5% | 31.7% | -4.2% | 21.1% | na |
| NAV +/- Price Ret | -0.010% | -0.001% | -0.001% | 0.003% | 0.002% | 0.004% | 0.002% | -1.5% | 2.2% | -0.9% | na |
| Large Blend Avg | 10.3% | 15.4% | 21.8% | 22.9% | -17.1% | 26.9% | 18.6% | 29.7% | -5.0% | 21.6% | 11.2% |
| ESGU Grade (NAV) | C | C | B | C | D | C | A | A | B | C | na |
| +/- Category | 0.2% | 1.6% | 2.6% | 2.8% | -3.1% | -0.1% | 3.9% | 2.5% | 0.8% | -0.4% | na |
| Risk Measures | |
| Beta: | 1.03 |
| R-Squared: | 100% |
| Standard Deviation: | 13.5% |
| Category Risk Index: | 1.01 |
| Category Risk Rating: | Above Average |
| Total Risk Index: | 1.11 |
| Total Risk Rating: | Average |
| Portfolio Characteristics | |
| Yield: | 0.9% |
| Total Assets: | $ 17,747 Mil |
| Share Class Assets: | $ 17,747 Mil |
| Turnover: | 24.0% |
| Expense Ratio: | 0.15% |
| Index Fund: | Yes |
| Index Tracked: | MSCI USA GR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | Yes |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 9.6 years | |||
| Average Tenure: 3.3 years | |||
| Managers (Year): Hsui Jennifer (2016), Sietsema Peter (2025), Waldron Matt (2025), White Steven (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 281 |
| % in Top 10 Holdings: | 35.1% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.2% |
Portfolio Allocation |
|
| Domestic Stock: | 99.5% |
| Foreign Stock: | 0.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.2% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | iShares |
| Phone Number: | 800-474-2737 |
| Website: | au.ishares.com |
| Inception Date: | December 1, 2016 |
Expenses and Fees
| Expense Ratio (%): | 0.15% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.42% |
