iShares ESG Screened S&P 500 ETF

XVV

Market cap $645M

iShares ESG Select Screened S&P 500 ETF has a strategy based on the S&P 500 Sustainability Screened Index. It has an ultra-low expense ratio of 8 bps. Incepted in September 2020, XVV has outperformed ESGU, though it has trailed IVV and EFIV. Compared to IVV, XVV has mostly stronger growth and quality characteristics, in part because of its larger exposure to NVDA.

XVV offers a conservative ESG screen, closely tracking the S&P 500 with minor alpha in certain market conditions, making it ideal for passive ESG investors. The ETF removes sectors like tobacco, fossil fuels, and controversial weapons, resulting in a tech-heavy, growth-aligned portfolio with minimal deviation from the S&P 500. XVV's expense ratio is competitive at 0.08%, and while yield is slightly lower than the S&P 500, tracking error and risk remain minimal.