Vanguard ESG International Stock ETF excludes stocks tied to controversial lines of business while maintaining strong diversification. Despite its low fee, the strategy’s screens eliminate a decent chunk of the foreign market and increase the fund’s active risk. For that reason, we are downgrading its Process Pillar to Above Average from High, and its Morningstar Analyst Rating to Silver from Gold.
Vanguard ESG International Stock ETF VSGX
Morningstar’s Analysis VSGX
Will VSGX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VSGX’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the VSGX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of VSGX’s parent organization’s priorities and whether they’re in line with investors’ interests.
A nice balance between ESG and broad diversification.
