Vestwell Advisors Environmental, Social, Governance (ESG) Program Overview
Vestwell Advisors is pleased to offer a lineup for 401(k) plans that focuses on Responsible Investments, which incorporate a broad range of approaches that integrate ESG considerations into the investment process.
For plans that engage Vestwell Advisors as its investment manager, and would like to incorporate ESG funds, this page provides a high level overview of the investment options available to plan participants.
Included in the investment program are managed accounts, risk models, target date models, and a core fund lineup. Our ESG program is designed to be fully flexible and customizable for participants. Our risk-based and age-based models are the same across our ESG and standard programs, while our core lineup and our managed account lineup feature both ESG and standard funds. The end product allows participants to decide how, and the extent to which, they want to incorporate ESG into their portfolios. See below for the ESG enhancements in this program.
Managed Account Lineup
| Asset Class | Ticker | Name | 1-Yr. Return | 5-Yr. | 10-Yr. |
|---|---|---|---|---|---|
| Diversified Emerging Mkts. | ESGE | iShares ESG Aware MSCI EM ETF | 9.79% | 2.68% | -% |
| Foreign Large Blend | ESGD | iShares ESG Aware MSCI EAFE ETF | 18.41% | 8.48% | -% |
| Intermediate Core Bond | EAGG | iShares ESG U.S. Aggregate Bond ETF | 1.17% | -0.27% | -% |
| Large Blend | DSI | iShares MSCI KLD 400 Social ETF | 28.51% | 15.90% | 12.40% |
| Large Growth | NULG | Nuveen ESG Large-Cap Growth ETF | 33.46% | 19.55% | -% |
| Large Value | NULV | Nuveen ESG Large-Cap Value ETF | 19.38% | 8.65% | -% |
| Mid-Cap Blend | XJH | iShares® ESG Screened S&P Mid-Cap ETF | 24.81% | -% | -% |
| Real Estate | *XLRE | Real Estate Select Sector SPDR® | 9.23% | 4.27% | -% |
| Small Blend | ESML | iShares ESG Aware MSCI USA Small-Cap ETF | 20.77% | 10.55% | -% |
| World Bond-USD Hedged | BGRN | iShares Global Green Bond ETF | 3.39% | -0.10% | -% |
Core Fund Lineup
| Fund Name | Ticker | Expense Ratio | 1-Yr. Return | 5-Yr. | 10-Yr. |
|---|---|---|---|---|---|
| iShares USD Green Bond ETF | BGRN | 0.2% | 3.39% | -0.10% | -% |
| iShares MSCI ACWI Low Carbon Target ETF | CRBN | 0.2% | 23.66% | 11.86% | -% |
| iShares MSCI KLD 400 Social ETF | DSI | 0.25% | 28.51% | 15.90% | 12.40% |
| iShares ESG U.S. Aggregate Bond ETF | EAGG | 0.1% | 1.17% | -0.27% | -% |
| iShares ESG Aware MSCI EAFE ETF | ESGD | 0.2% | 18.41% | 8.48% | -% |
| iShares ESG Aware MSCI EM ETF | ESGE | 0.25% | 9.79% | 2.68% | -% |
| iShares ESG Aware MSCI USA ETF | ESGU | 0.15% | 27.55% | 15.46% | -% |
| Vanguard ESG US Stock ETF | ESGV | 0.09% | 27.92% | 15.64% | -% |
| iShares ESG Aware MSCI USA Small-Cap ETF | ESML | 0.17% | 20.77% | 10.55% | -% |
| First Trust Global Wind Energy ETF | FAN | 0.6% | 3.13% | 8.39% | 5.54% |
| Fidelity® U.S. Sustainability Index | FITLX | 0.11% | 30.74% | 16.32% | -% |
| Fidelity® Sustainability Bond Index | FNDSX | 0.1% | 1.14% | -0.30% | -% |
| Fidelity® Intl Sustainability Idx | FNIDX | 0.2% | 15.42% | 6.55% | -% |
| iShares Global Clean Energy ETF | ICLN | 0.41% | -17.32% | 9.62% | 5.04% |
| Nuveen ESG US Aggregate Bond ETF | NUBD | 0.16% | 1.22% | -0.40% | -% |
| Nuveen ESG High Yield Corporate Bd ETF | NUHY | 0.31% | 10.49% | -% | -% |
| Nuveen ESG Large-Cap Growth ETF | NULG | 0.26% | 33.46% | 19.55% | -% |
| Nuveen ESG Large-Cap Value ETF | NULV | 0.26% | 19.38% | 8.65% | -% |
| Nuveen ESG Mid-Cap Growth ETF | NUMG | 0.31% | 16.05% | 10.00% | -% |
| Nuveen ESG Mid-Cap Value ETF | NUMV | 0.31% | 24.83% | 8.60% | -% |
| BlackRock Wealth Liqd Envirtly Awr Instl | PNIXX | 0.2% | 5.43% | 2.14% | 1.52% |
| Xtrackers S&P 500 ESG ETF | SNPE | 0.1% | 28.55% | -% | -% |
| iShares MSCI USA ESG Select ETF | SUSA | 0.25% | 25.77% | 15.58% | 12.11% |
| iShares ESG 1-5 Year USD Corp Bd ETF | SUSB | 0.12% | 5.02% | 1.63% | -% |
| Vanguard ESG US Corporate Bond ETF | VCEB | 0.12% | 4.34% | -% | -% |
| Vanguard ESG International Stock ETF | VSGX | 0.12% | 15.43% | 6.66% | -% |
| iShares® ESG Screened S&P Mid-Cap ETF | XJH | 0.12% | 24.81% | -% | -% |
| Real Estate Select Sector SPDR® | *XLRE | 0.1% | 9.23% | 4.27% | -% |
Age-Based Investment Options
| Model Name | Wtd. Int. Expense Ratio | Fact Sheet |
|---|---|---|
| Target Retirement 2025 | 0.03% |  |
| Target Retirement 2030 | 0.04% | |
| Target Retirement 2035 | 0.04% | |
| Target Retirement 2040 | 0.04% | |
| Target Retirement 2045 | 0.03% | |
| Target Retirement 2050 | 0.03% | |
| Target Retirement 2055 | 0.03% | |
| Target Retirement 2060 | 0.03% | |
| Target Retirement 2065 | 0.03% | |
| Target Retirement 2070 or later | 0.03% | |
| Target Retirement Moderate | 0.04% | |
| Target Retirement Conservative | 0.04% | |
*Since the expense ratio of each fund is different, the weighted internal expense ratio uses a formula to blend expense ratios of each underlying ETF or fund in the portfolio. The result shown above is the expense ratio for all funds in the portfolio.
Risk-Based Investment Options
| Model Name | Expense Ratio | Fact Sheet |
|---|---|---|
| Vestwell Capital Preservation | 0.07% | |
| Vestwell Income | 0.04% | |
| Vestwell Conservative | 0.04% | |
| Vestwell Moderately Conservative | 0.03% | |
| Vestwell Moderate | 0.03% | |
| Vestwell Moderately Aggressive | 0.03% | |
| Vestwell Aggressive | 0.03% | |
Disclaimer
There are risks inherent in any investment, including the decision not to invest, and there is no assurance that any investment, asset class, style or index will provide positive performance over time. Diversification and strategic asset allocation do not guarantee any outcome or protect against a loss. Past performance does not guarantee any future results. All investments are subject to risk, including the loss of principal. Consider the investment objectives, risks, and charges and expenses of the funds carefully before investing.
All data is provided by third party sources, including each holdings' reporting, representations, and disclosures about their sustainability and other responsible investment metrics. Neither Vestwell Holdings, Inc. nor any of its affiliates have independently reviewed, audited or verified the information provided by those sources. All content is provided for general information purposes and is not to be construed as investment advice. Investments in stocks and bonds are subject to risk of economic, political, and issuer-specific events that cause the value of these securities to fluctuate. International investments are subject to additional risks such as currency fluctuation, political instability, and adverse economic conditions. Fixed income securities are subject to increased loss of principal during periods of rising interest rates and may be subject to various other risks, including changes in credit quality, liquidity, prepayments, and other factors. Inflation-protected securities may react differently from other debt securities to changes in interest rates. Any estimated retirement income projections presented on Vestwell's sites are based on hypothetical investments in global equities, global bonds, and Treasury Inflation-Protected Securities. Other investments not considered may have characteristics similar or superior to those presented. Vestwell Advisors LLC is a subsidiary of Vestwell Holdings, Inc. Vestwell Advisors LLC is an investment advisor registered with the Securities and Exchange Commission. A full prospectus is available by contacting Vestwell Advisors at info@vestwell.com. For more information about Vestwell Advisors, please refer to our Form ADV, which may be obtained at www.vestwell.com.
Investing on the basis of environmental, social and governance and socially responsible investing criteria involves qualitative and subjective analysis. There is no guarantee that the determinations made will align with the beliefs or values of a particular investor. Investments identified by an ESG policy may not operate as expected, and adhering to an ESG policy may result in missed opportunities. You can expect that ESG considerations will result in investment selections that differ from investment selections that would be made in the absence of ESG considerations. As such, the performance of such investments is likely to differ as well. ESG criteria used by third-party providers can differ significantly, and data can vary across providers and within the same industry for the same provider. In addition, there are significant differences in interpretations of what it means for an investment to have positive ESG characteristics. ESG portfolio decisions may differ with other investors' or advisers' views.
Investments in “green” bonds include bonds whose proceeds are used principally for climate mitigation, climate adaptation or other environmentally beneficial projects, such as, but not limited to, the development of clean, sustainable or renewable energy sources, commercial and industrial energy efficiency, or conservation of natural resources. A fund that invests in green bonds, under certain market conditions, may underperform as compared to funds that invest in a broader range of investments. In addition, some green bonds may be dependent on government tax incentives and subsidies as well as political support for certain environmental technologies and companies. Investing primarily in green bonds may affect a fund's exposure to certain sectors or types of investments and could impact the fund's relative investment performance depending on whether such sectors and/or investments are in or out of favor in the market. The green bond sector may also have challenges such as a limited number of issuers, limited liquidity in the market and limited supply of bonds that merit “green” status, each of which may adversely affect a fund that primarily invests in green bonds.