ESG.TO ETF: S&P 500 ESG index holdings, MER

Short answer: ESG.TO is Invesco’s passive index ETF tracking the S&P 500 ESG Index. Listed in March 2020, 0.17% MER, 22.5% three-year annualized return through May 2026. The cheapest U.S. ESG equity option on the Morningstar Five Star and Gold list.

ESG.TO does what the ticker says: it tracks the S&P 500 ESG Index, which is the S&P 500 with the worst-rated ESG names removed. The sector mix and overall return profile stay close to the headline S&P 500.

Not financial advice. Fund details change. Check current disclosures.

What ESG.TO actually is

TSX-listed, CAD-denominated (unhedged). Invesco manages it. It tracks the S&P 500 ESG Index, a rules-based S&P index that excludes companies in tobacco, controversial weapons, and the lowest ESG-rated companies in each sector.

ESG.TO fund facts
Attribute	Value
Ticker	ESG (TSX)
Inception	March 5, 2020
Asset mix	U.S. large-cap equities, ESG-screened
MER	0.17%
Strategy	Passive, index-tracking
Currency	CAD (unhedged)
Net assets	about $1,065.1M (May 2026)
3-year annualized return	22.5% (through May 19, 2026)

What ESG.TO holds

ESG.TO asset allocation

U.S. equity 99.1%

International equity 0.5%

Cash 0.4%

Source: Morningstar Direct, data as of May 19, 2026, via The Globe and Mail.

The S&P 500 ESG Index keeps roughly two-thirds of the original S&P 500’s market cap, so the sector mix and top holdings overlap heavily with the headline index. Tech, financials, healthcare, and consumer staples dominate.

The fee

Fee drag calculator

How much ESG's MER costs vs XUS over time

Starting balance Annual contribution Years Gross return %

Extra cost from ESG

That's what you pay ESG (0.17%) over 20 years above what XUS (0.1%) would charge on the same portfolio.

ESG total fees

XUS total fees

Peer comparison: XUS, iShares Core S&P 500 Index ETF (CAD-Hedged or unhedged, comparable broad U.S. equity). Assumes constant gross return, annual contributions made at year-end, and MER charged on average annual balance. Real returns vary.

For illustration only. Simplified compounding. Ignores trading costs, tracking error, distribution reinvestment timing, taxes, and the obvious fact that real returns are not constant. MERs and peer fees as of May 2026 and may change. Do not use this number as the basis for a real decision.

The premium to a broad S&P 500 tracker is 7 basis points. Very modest premium for the ESG screen.

How close is the S&P 500 ESG to the regular S&P 500?

Tax treatment

Tax treatment for Canadian investors

Distribution frequency: Quarterly
What distributions are made of: Foreign income from U.S. dividends (taxed as interest in non-registered accounts)
Small capital gains distributions
In a registered account: Inside an RRSP, U.S. dividend withholding is exempt under the U.S.-Canada treaty (subject to standard caveats around fund structure). That makes ESG.TO most tax-efficient inside an RRSP.
In a non-registered account: The 15% U.S. withholding applies inside a TFSA or FHSA and is not recoverable. In a fully taxable account, U.S. dividend income gets the foreign-income treatment.

General guidance, not tax advice. Distribution composition shifts year to year, and edge cases (currency-hedged wrappers, fund-of-funds structures, the U.S.-Canada treaty's reach inside an RRSP) can change the picture. Confirm with the issuer's current T3 disclosures and a tax professional before acting.

How ESG.TO compares to alternatives

ESG.TO vs XUS / VFV. Broad S&P 500 trackers at 0.07 to 0.10%. ESG.TO costs 7 to 10 bps more for the screen.
ESG.TO vs QQCE. Both Invesco passive ESG U.S. equity ETFs. ESG.TO tracks the S&P 500; QQCE tracks the NASDAQ 100. Different indices, different sector concentration.
ESG.TO vs GEQT. GEQT is global all-equity ESG; ESG.TO is U.S.-only. Different geographic scope.

Frequently asked questions

What is ESG.TO?

Invesco S&P 500 ESG Index ETF. A passive index-tracking ETF that follows the S&P 500 ESG Index, a screened version of the headline S&P 500.

What is ESG.TO’s MER?

0.17%. The cheapest U.S. ESG equity ETF on the Morningstar Five Star and Gold list of 2020 and 2021 launches.

How is the S&P 500 ESG Index built?

S&P starts with the S&P 500 universe, removes companies in tobacco and controversial weapons, removes companies with severe ESG controversies, and removes the lowest-ESG-scored companies in each sector. The remaining companies are weighted by float-adjusted market cap, similar to the headline index.

Does ESG.TO track the S&P 500 closely?

The two indices typically track within about 1% per year. The screen removes the lowest-ESG names but keeps the highest-weighted megacaps that drive most of the S&P 500’s return. So directional moves are very similar.

Is ESG.TO hedged to CAD?

No. ESG.TO is unhedged. The underlying USD exposure means currency moves affect headline returns.

Where should I hold ESG.TO?

Inside an RRSP for tax efficiency on U.S. dividend income. Inside a TFSA or FHSA, the 15% U.S. withholding applies and is not recoverable.

Should I pick ESG.TO over XUS?

If you want the ESG screen and 7 bps of additional fee is acceptable, yes. If you don’t have a strong ESG preference, XUS at 0.10% delivers comparable S&P 500 exposure.

The honest verdict

Good fit for

DIY investors who want low-cost U.S. large-cap equity exposure with an ESG screen, ideally held inside an RRSP.

Skip if

You're indifferent to the ESG screen. XUS or VFV deliver comparable S&P 500 exposure at lower cost.

Cheaper alternative XUS · iShares Core S&P 500 Index ETF · MER 0.10%

Bottom line

ESG.TO is the cleanest, cheapest way to get an ESG-screened S&P 500 tracker in a Canadian wrapper. The screen is modest, the return profile tracks the headline S&P 500 closely, and the fee premium is small. If ESG matters and you can hold inside an RRSP, this is a reasonable default.

ESG.TO ETF: what Invesco S&P 500 ESG Index ETF is, what it holds, and how it works