The AI (ChatGPT) ESG Stock Investing Guide: Vanguard ESG International Stock ETF (VSGX)

Here is the response from ChatGPT for the prompt Vanguard ESG International Stock ETF (VSGX) 500 words entered on April 30, 2023, 2023

Vanguard ESG International Stock ETF (VSGX) is an exchange-traded fund that seeks to provide investors with exposure to international stocks that have strong environmental, social, and governance (ESG) practices. The fund is managed by Vanguard, which is known for offering low-cost index funds and ETFs.

VSGX tracks the FTSE Global All Cap ex US Choice Index, which is designed to include companies that meet certain ESG criteria. The index uses a screening process to exclude companies that are involved in industries such as tobacco, controversial weapons, and fossil fuels. The remaining companies are evaluated based on ESG factors such as carbon emissions, labor standards, and board diversity. The index then weights the included companies based on their ESG scores, with higher-scoring companies receiving a higher weight.

As of April 2023, VSGX has approximately $7 billion in assets under management and a net expense ratio of 0.17%, which is lower than the industry average. This makes VSGX an attractive option for investors looking for exposure to socially responsible international companies without paying high fees.

VSGX's top holdings include companies like Nestle, Toyota, Roche Holding, and Samsung Electronics, which are well-known for their commitment to sustainability and ESG practices. The fund is also diversified across various sectors, with the healthcare, consumer goods, and technology sectors making up the largest holdings.

One potential downside of VSGX is that its focus on ESG factors may limit its exposure to certain industries or countries that are not considered socially responsible. This could potentially lead to underperformance compared to funds that do not use ESG criteria in their selection process. However, studies have shown that companies with strong ESG practices tend to outperform their peers over the long term, so this may not necessarily be a major concern for investors.

Overall, Vanguard ESG International Stock ETF (VSGX) is a solid choice for investors who want exposure to socially responsible international companies at a low cost. The fund's focus on ESG factors and its use of a screening process to exclude certain industries make it a good option for those who want to align their investments with their values. As with any investment, investors should carefully consider their investment goals, risk tolerance, and other factors before investing in VSGX or any other ETF.

Table and Chart of VSGX Performance (From buyupside.com. Not from chatGPT.)

See what a $1,000 investment in Vanguard ESG International Stock ETF (VSGX) is worth today.

Values are based on monthly closes adjusted for splits and dividends from Alpha Vantage.