ESGE ETF Overview: Returns, Expense Ratio, Holdings & Alternative ETFs
The iShares ESG Aware MSCI Emerging Markets ETF (ESGE) tracks an index that increases the weighting of companies within the MSCI Emerging Markets universe that exhibit strong ESG characteristics, making it a dividend-paying product well suited for investors who want emerging-markets exposure paired with ESG-aware holdings.
SubscribeWhat Is the iShares ESG Aware MSCI Emerging Markets ETF?
It is an emerging-markets equity ETF that tracks an index designed to preserve the risk-and-return profile of the MSCI Emerging Markets Index while tilting the portfolio toward companies with stronger ESG characteristics.
It is well suited for investors who want diversified exposure to emerging markets while incorporating ESG criteria.
The ETF is passively managed (index-tracking) by BlackRock.
How to Invest in the iShares ESG Aware MSCI Emerging Markets ETF
| Item | Details |
|---|---|
| Underlying Index | MSCI Emerging Markets Extended ESG Focus Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Once per quarter |
| Dividend Schedule | Semi-annual dividends |
| Total Expense Ratio | 0.25% |
The portfolio is constructed to maintain a risk-and-return profile similar to the MSCI Emerging Markets Index while overweighting companies with relatively higher ESG scores and underweighting those with lower scores. The majority of assets are allocated to index constituents and economically equivalent investment exposures.
- Weighting tilt based on ESG scores
- Maintained broad emerging-markets diversification
Size and Cost of the iShares ESG Aware MSCI Emerging Markets ETF (AUM & Expense Ratio)
Assets under management (AUM) stand at $6.4B, and the total expense ratio is 0.25% annually.
Performance and Flows of the iShares ESG Aware MSCI Emerging Markets ETF
1-Year Price Performance
Dividend & Yield
52-Week Price RangeEmerging-markets equities have historically exhibited higher volatility than developed markets, with ups and downs driven by currency and policy conditions. Because of the ESG screen, sector and country weightings may differ somewhat from the broad emerging-markets index.
Fund flows have tended to alternate between inflows and outflows depending on investor interest in ESG strategies and the emerging-markets economic cycle, with inflows typically expanding when expectations for emerging-markets growth strengthen.
Strengths and Weaknesses of the iShares ESG Aware MSCI Emerging Markets ETF
Emerging-markets diversification combined with ESG criteria is a key strength, while emerging-markets volatility and currency risk are points to keep in mind.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products for the iShares ESG Aware MSCI Emerging Markets ETF
The sister product ESGD ETF targets developed (EAFE) markets rather than emerging markets and serves as an alternative for investors who want developed-market exposure. VSGX ETF, an international ESG product from a different provider, is worth comparing on fees and portfolio construction. KLMN·KLMT ETFs are climate-themed ESG products with a somewhat different focus but can also be reviewed as sustainability-investment alternatives. For direct comparison, EEM·IEMG ETFs track broad emerging-markets indices and provide emerging-markets exposure without an ESG screen.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 ESGD | iShares Trust iShares ESG Aware MSCI EAFE ETF | $102.72 | -0.8% | $11.9B | 0.20% | 3.33% | +8.9% |
 VSGX | Vanguard ESG International Stock ETF | $78.00 | -2.0% | $6.6B | 0.10% | 3.11% | +10.5% |
 KLMN | Invesco MSCI North America Climate ETF | $31.02 | -1.7% | $2.5B | 0.09% | 1.17% | +10.9% |
 KLMT | Invesco MSCI Global Climate 500 ETF | $34.23 | -1.7% | $1.6B | 0.10% | 1.82% | +10.6% |
 CRBN | iShares Low Carbon Optimized MSCI ACWI ETF | $251.42 | -1.8% | $1.2B | 0.20% | 2.03% | +8.9% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.44% | $406.13 | -6.0% | $2.11T | 26.1 | 1.01% |
| SKHY | SK Hynix Inc ADR | 0.10% | $149.21 | -8.0% | $1.09T | 9.7 | 1.5% |
| BABA | Alibaba Group Holding Ltd ADR | 0.06% | $98.04 | -1.5% | $243.9B | 23.1 | 1.14% |
| HDB | HDFC Bank Ltd ADR | 0.01% | $22.18 | +1.7% | $114.1B | 13.2 | 1.93% |
| CHT | Chunghwa Telecom ADR | 0.01% | $48.99 | +0.9% | $38.0B | 29.9 | 3.37% |
Investor Checklist for the iShares ESG Aware MSCI Emerging Markets ETF
Here are the key points to review before investing in ESGE. Consider the ESG screening methodology alongside the political and currency risks unique to emerging markets, and review how the fund differs from broad emerging-markets index products.
| Checkpoint | What to Verify | Current Status |
|---|---|---|
| 💵 Expense Ratio | Impact of cumulative costs over long-term holding | Annual expense ratio applies |
| 🌏 Emerging-Markets Weighting | Review country and sector exposure composition | Broad diversification maintained |
| 🌱 ESG Criteria | Confirm screening methodology and differences vs. broad index | Tracks ESG-tilted index |
| 💱 Currency | Currency impact on dollar-converted returns | No currency hedging applied |
Political and economic uncertainty along with currency volatility are the primary risks inherent to emerging markets, and sector and country concentration driven by the ESG screen should also be considered. Differences in constituents versus the broad emerging-markets index can lead to performance gaps.
It is a suitable option for investors who want diversified emerging-markets exposure while reflecting sustainability criteria. For those seeking pure emerging-markets exposure without ESG considerations, broad index ETFs such as EEM·IEMG can serve as alternatives.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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