Investing in ESG funds like the Vanguard ESG US Stock ETF (ESGV) can not only align your portfolio with your sustainable values but also offer potential financial benefits. As of early 2025, global ESG assets are projected to surpass **$50 trillion**, reflecting a significant shift toward sustainable investing. ESGV provides exposure to over **1,500 U.S. stocks** while excluding companies involved in industries such as fossil fuels and weapons, maintaining a competitive **0.09% expense ratio**. Research indicates that companies with strong ESG practices often exhibit lower risk and higher long-term profitability, enhancing portfolio stability.

Performance-wise, ESGV has closely mirrored the S&P 500 Index. Over the past five years, ESGV achieved an annualized return of approximately **10.7%**, compared to the S&P 500's **11.4%**. This slight underperformance is primarily due to sector exclusions inherent in ESG criteria. Despite this, ESGV remains well-diversified, with top holdings in companies like Apple and Microsoft. As regulatory frameworks and consumer preferences increasingly favor sustainability, ESG-focused funds like ESGV are well-positioned for potential long-term growth and resilience.