ESGD vs FCBSX Fund Comparison

A comparison between ESGD and FCBSX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

Group Created with Sketch.

Minafi's Take on ESGD vs FCBSX

Here's an in depth look at the differences between iShares ESG MSCI EAFE ETF ($ESGD) and Franklin Mutual U.S. Value Fund Class C ($FCBSX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

82% FI Score
  • esgd
  • ETF
  • International Stocks
  • Large Blend

iShares ESG MSCI EAFE ETF

Expenses: 0.20% (Better than 1% of similar funds)

This is an OK choice for a Large Blend International Stocks fund. See why »

31% FI Score
  • fcbsx
  • Mutual Fund
  • US Stocks
  • Mid-Cap Value

Franklin Mutual U.S. Value Fund Class C

Expenses: 1.64% (Better than 0% of similar funds)

This is a bad choice for a Mid-Cap Value US Stocks fund. See why »

$ESGD is classified as an ETF while $FCBSX is classified as a Mutual Fund. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

ESGD FCBSX
Market Score 7.5 /10 5.3 /10
Category Score 10.0 /10 5.0 /10
Total 17.5 10.3

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $ESGD

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, ESGD has an expense ratio of 0.20% while FCBSX has an expense ratio of 1.64%.

Winner: $ESGD

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, ESGD is a large fund with 2.21 Billion in assets under management. FCBSX, on the other hand, is a medium fund with 606 Million in assets under management.

Winner: $ESGD, iShares ESG MSCI EAFE ETF

Which Should You Choose? ESGD or FCBSX?

Comparing these two funds isn't an apples to apples comparison. ESGD is a International Stocks Large Blend fund, while FCBSX is a US Stocks Mid-Cap Value fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives ESGD a score of 82 and FCBSX a score of 31.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$ESGD

iShares ESG MSCI EAFE ETF

82

Read More
Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 9 /10
Expense Rating 8 /10
Market Score 8 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Inception Date Jun-28-2016
Exchange NASDAQ
Expense Ratio 0.200%
Net Assets 2.21 Billion
Yield 3.00%
Holdings
Description Info
Market International Stocks
Category Large Blend
Sectors
  • Basic Materials 7.30%
  • Communication Services 6.34%
  • Consumer Cyclicals 8.99%
  • Consumer Defensive 11.78%
  • Energy 4.06%
  • Financial Services 16.17%
  • Healthcare 14.27%
  • Industrials 15.56%
  • Real Estate 3.39%
  • Technology 8.64%
  • Utilities 3.50%
Regions
  • Africa/Middle East 0.56%
  • Asia Developed 4.28%
  • Asia Emerging 0.36%
  • Australasia 7.12%
  • Europe Developed 47.39%
  • Japan 25.81%
  • North America 0.57%
  • United Kingdom 13.92%

$FCBSX

Franklin Mutual U.S. Value Fund Class C

31

Read More
Ratings
Rating Type Rating
Expense Ratio Score 2 /10
Expense Rating 0 /10
Market Score 5 /10
Category Score 5 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Apr-2-1990
Exchange NMFQS
Expense Ratio 1.640%
Net Assets 606 Million
Yield 0.98%
Holdings
Description Info
Market US Stocks
Category Mid-Cap Value
Sectors
  • Basic Materials 5.25%
  • Communication Services 7.49%
  • Consumer Cyclical 9.29%
  • Consumer Defensive 9.26%
  • Energy 6.28%
  • Financial Services 22.25%
  • Healthcare 12.92%
  • Industrials 9.72%
  • Real Estate 5.51%
  • Technology 10.87%
  • Utilities 1.16%
Regions
  • North America 100.00%

Adam says: Learn how to confidently invest for retirement!

Join the Minafi Investor Bootcamp to see how.

This 10-course bootcamp starts at only $10 for everything!

Minafi - The intersection of FI, minimalism & mindfulness.

Don't miss out on new posts, courses, interactive articles and more!

Join & Get Your First Course Free

© 2024   Adam Fortuna

Site Map
Triangle Graduation Cap Angle Down Book regular Phone laptop regular fire regular fire regular search regular Acorn duotone Seedling duotone thumbs up duo thumbs down duo