Our approach to ESG
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Because our investors are our owners, we exist to serve our clients.1With no conflicting loyalties, we focus on doing what’s right as a steward for our investors.
With these guiding principles, we offer environmental, social, and governance(ESG) products that can help our clients reach their investment goals while still giving them the access and choice to invest with their preferences.
Investment strategies
Every product Vanguard offers,including our ESG investments, must meet our rigorous standards and align with our time-tested investment philosophy.
We currently offer seven ESG products, including four exclusionary index funds and three active funds.
For investors who want to limit exposure to certain industries or business activities that pose heightened ESG-related risks or conflict with their preferences, we offer index products that limit or avoid exposure to specific industries such as firearms, tobacco, or fossil fuels.
We also offer active ESG strategies in which managers seek to generate excess return by allocating capital toward companies that meet certain ESG criteria. This may include companies demonstrating leading ESG practices, showcasing improvements on ESG dimensions, or delivering a positive social and/or environmental impact.
Our ESG products
Exclusionary
Indexed
Note: You can learn more about our ESG funds, including benchmark details and exclusionary screening methodologies, by clicking on each fund name above.
Our insights and research
Looking to fill a mandate or add Vanguard products to your approved lists?
Reach out to your client success executive or contact a representative at 800-523-1036 for more information on ESG investing.
1Vanguard is owned by its funds, which are owned by Vanguard’s fund shareholder clients.
For more information about Vanguard funds or ETFs, visitvanguard.comto obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
All investing is subject to risk, including the possible loss of the money you invest.
ESG portfolios are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the index provider or advisor, as applicable, for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other portfolios screened for ESG criteria. The index provider or advisor assessment of a company, based on the company’s level of involvement in a particular industry or their own ESG criteria, may differ from that of other portfolios or an investor’s assessment of such company. As a result, the companies deemed eligible by the index provider or advisor may not reflect the beliefs and values of any particular investor, and certain screens may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. The advisor may not be successful in assessing and identifying companies that have or will have a positive impact or support a given position. In some circ*mstances, companies could ultimately have a negative or no impact or support of a given position. The weight given to ESG factors for active non-ESG funds may vary across types of investments, industries, regions and issuers; it may change over time; and not every ESG factor may be identified or evaluated. Where ESG risk factor analysis is used as one part of an overall investment process (as is the case for actively managed equity and fixed income non-ESG funds), such funds may still invest in securities of issuers that all market participants may not view as ESG focused or that may be viewed as having a high ESG risk profile.
