ESG Funds Through Fidelity and Vanguard

In recent years, there's been a growing interest in sustainable investing. Environmental, Social, and Governance (ESG) factors have become crucial considerations for many investors. As a result, many financial institutions have launched ETFs that focus on sustainability. Today, we'll compare two leading financial institutions, Fidelity and Vanguard, and their sustainable ETF offerings.

1. Fidelity's Sustainable ETFs

a. Fidelity U.S. Sustainability Index Fund (FITLX)

Ticker: FITLX
Expense Ratio: 0.11%
Assets Under Management (AUM): $393M

This fund offers exposure to U.S. companies that prioritize ESG criteria. With a relatively low expense ratio, it provides an affordable option for investors looking to align their portfolios with their values.

b. Fidelity International Sustainability Index Fund (FNIDX)

Ticker: FNIDX
Expense Ratio: 0.2%
AUM: $105M

For those looking to diversify their sustainable investments internationally, FNIDX offers exposure to international companies that meet specific ESG criteria. Although the expense ratio is slightly higher than its U.S. counterpart, it's still competitive in the ESG space.

2. Vanguard's Sustainable ETFs

a. Vanguard ESG US Stock ETF (ESGV)

Ticker: ESGV
Expense Ratio: 0.12%
AUM: $1.69B

Vanguard's ESGV provides investors with exposure to U.S. companies that have been screened for certain ESG criteria. With assets nearing $2 billion, it's evident that this fund has garnered significant interest from the investment community.

b. Vanguard ESG International Stock ETF (VSCX)

Ticker: VSCX
Expense Ratio: 0.17%
AUM: $1.09B

For investors seeking international ESG exposure, VSCX offers a diversified portfolio of companies outside the U.S. that adhere to specific ESG standards. With over a billion dollars in assets, it's a testament to the growing interest in international sustainable investing.

Both Fidelity and Vanguard offer compelling options for investors interested in sustainable investing. While Fidelity's offerings come with slightly lower expense ratios, Vanguard's funds have attracted a larger asset base. As always, investors should conduct their research and consider their investment goals before making a decision.

Remember, investing in ESG funds not only aligns your portfolio with your values but also supports companies that prioritize sustainable and ethical practices. As the demand for ESG investing continues to grow, it's exciting to see financial giants like Fidelity and Vanguard leading the way.

Terminology Breakdown

Assets Under Management (AUM): This refers to the total market value of assets that an investment company or financial institution manages on behalf of investors. A higher AUM can indicate trustworthiness and popularity of a fund, but it's not the sole metric to consider when evaluating an investment.
Expense Ratio: This is a measure of what it costs an investment company to operate a mutual fund or ETF. Expressed as a percentage, it represents the portion of assets deducted each fiscal year for fund expenses, including 12b-1 fees, management fees, administrative fees, operating costs, and all other asset-based costs incurred by the fund. A lower expense ratio can be attractive as it means lower costs for the investor.
Ticker Symbol: A unique series of letters representing a particular publicly traded stock or fund. Investors use ticker symbols to place trade orders and to identify securities.