At a glance
ESML charges 0.17% a year, above the 0.16% average of the 8 funds most like it (the 6th cheapest of 9). It has $2.98B in assets, the 4th largest of that group; it paid 0.94% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +16.5% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +21.3% a year. At its worst it fell 41.7% in the 2020 crash (S&P 500: 33.7%) and 25.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 21 months after the lows. Its ten largest positions make up 7.5% of the fund, out of 902 in all.
The short version
The iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is a BlackRock index fund that holds about 900 smaller U.S. companies and tracks the MSCI USA Small Cap Extended ESG Focus Index. It aims to behave like the small-cap market while leaning toward companies with better environmental, social and governance (ESG) ratings. It also drops tobacco, certain weapons and some fossil-fuel businesses. Its 0.17% yearly cost is close to the 0.16% peer average but higher than Vanguard Small Cap ETF's 0.05%.
Price history
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ESML +16.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| ESML official prospectus, to Dec 31, 2024 | — | +11.86% | — | +9.19% | — | +9.10% |
| MSCIUSA Index index, same period | — | +25.08% | — | +14.56% | — | +14.46% |
| MSCIUSA Small Cap Extended ESG Focus Index index, same period | — | +12.08% | — | +9.31% | — | +9.23% |
| ESML price data to Oct 27, 2026 | +16.8% | +16.5% | +21.3% | +7.2% | — | +10.3% |
- Over the year to Oct 27, 2026, ESML returned +16.5%, 4th of 9 among similar funds.
- Its 5-year annualized return was +7.2%.
- In the 2020 COVID crash it fell 41.7% and regained its old high 7.5 months after the low.
- Its worst full calendar year was 2022 (-17.3%); its best was 2019 (+29.1%).
- The deepest fall in its price history was 42% (Jan 16, 2020 to Mar 23, 2020), recovered by Nov 9, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +16.8% | — |
| 2025 | +10.6% | — |
| 2024 | +12.0% | +11.86% |
| 2023 | +17.3% | +17.31% |
| 2022 | -17.3% | -17.22% |
| 2021 | +19.3% | +19.31% |
| 2020 | +19.6% | +19.77% |
| 2019 | +29.1% | +28.53% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 41.6% over that stretch · deepest drop along the way 41.7%, back to its old high 7.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 22.7% over that stretch · deepest drop along the way 25.3%, back to its old high 21.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3700 | |
| 2025 | $0.4900 | -5.8% |
| 2024 | $0.5200 | +6.1% |
| 2023 | $0.4900 | +2.1% |
| 2022 | $0.4800 | +29.7% |
| 2021 | $0.3700 | +8.8% |
| 2020 | $0.3400 | +6.3% |
| 2019 | $0.3200 |
What's inside
As of Aug 31, 2026, the fund held 902 securities; the ten largest made up 7.5% of assets. It also reported 4.63% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| SANDISK CORPORATION | 3.33% | |
| MODERNA, INC. | 0.74% | |
| US FOODS HOLDING CORP. | 0.57% | |
| ASSURANT, INC. | 0.50% | |
| OVINTIV INC. | 0.46% | |
| ATI INC | 0.44% | |
| NVENT ELECTRIC PUBLIC LIMITED COMPANY | 0.38% | |
| ROYAL GOLD, INC. | 0.38% | |
| CARPENTER TECHNOLOGY CORPORATION | 0.36% | |
| JONES LANG LASALLE INCORPORATED | 0.36% | |
| DYNATRACE, INC. | 0.32% | |
| UNUM GROUP | 0.31% | |
| GUIDEWIRE SOFTWARE, INC. | 0.31% | |
| FACTSET RESEARCH SYSTEMS INC. | 0.31% | |
| NUTANIX, INC. | 0.31% |
By country
United States 94.32%Bermuda 1.84%Ireland 0.91%Canada 0.55%Puerto Rico 0.48%By asset type
Stocks 99.4%Other 0.17%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $487.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +5.49%, -4.12%, +2.19%.
How it works
ESML tracks the MSCI USA Small Cap Extended ESG Focus Index, which MSCI builds. MSCI starts with its MSCI USA Small Cap Index, which covers the smaller-company part of the U.S. stock market. It then removes companies tied to tobacco, controversial weapons, civilian firearms, thermal coal and oil sands. Some of these cuts use revenue limits, such as $20 million or 5% of revenue. It also removes companies caught up in very severe, ongoing controversies.
MSCI rates each remaining company on two things: how exposed it is to the key ESG issues in its industry, such as climate change or resource scarcity, and how well it manages them. A computer model then sets each stock's weight. This is called an "optimized" index. The model favors higher-rated companies while keeping risk and return close to the parent index. At each quarterly review, the index's ESG score must be at least 10% better than the parent's. The result is a tilt, not a strict screen. As of August 31, 2026, oil and gas producer Ovintiv was one of the fund's five largest holdings.
BlackRock Fund Advisors doesn't try to beat the index. It uses "representative sampling," which means the fund may hold a sample of stocks that matches the index's overall profile rather than every stock in it. At least 90% of assets go into index stocks. Up to 10% can sit in futures, cash and similar holdings. The fund may also lend out up to one-third of its assets to earn extra income.
What it really costs
- ESML charges 0.17% a year, versus an average of 0.16% for the similar funds below (6th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $17 in the first year and $217 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| ESML | $17 | $55 | $96 | $217 |
In a retirement portfolio
Small-company stocks swing more than large ones, and the fund fell 42% at its worst, so it fits better as a smaller slice next to a core holding than as the core itself.
ESML could add small-company exposure next to a large-company core fund, but small caps have trailed. In the five years to December 31, 2024, the fund returned 9.19% a year, compared with 14.56% for the MSCI USA Index. Its deepest drop was 42%, in early 2020, and it was back to its old high about 7.6 months later. The 2022 slump took longer to heal. The fund was down 25.3% by June 2022 and didn't regain its peak until March 2024, about 21 months later. Its worst calendar year was 2022, at −17.2%. Anyone who sold shares for spending money during a stretch like that would have locked in losses. The fund launched in 2018, so it has no 2008 record. Income is small: the yield was 0.94% as of October 27, 2026, paid quarterly. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want broad U.S. small-cap exposure across about 900 stocks, with tobacco, controversial weapons, civilian firearms and thermal coal screened out.
- People who want an ESG tilt that stays close to the MSCI USA Small Cap Index, not a narrow, concentrated sustainability portfolio.
- Long-term holders who can sit through drops like the 42% fall in early 2020 and the 21-month recovery after 2022.
Look elsewhere if
- Cost-focused investors: the 0.17% expense ratio is more than three times Vanguard Small Cap ETF's 0.05%.
- Retirees who need meaningful income from a fund. The yield was 0.94% as of October 27, 2026.
- Investors who want a strictly fossil-fuel-free fund. Oil and gas producer Ovintiv was a top-five holding as of August 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| ESML this fund | — | 0.17% | $2.98B | +16.5% | +21.3% |
| SCHM Schwab US Mid-Cap ETF | 49% | 0.04% | $14.86B | +20.5% | +18.9% |
| BBMC JPMorgan BetaBuilders U.S. Mid Cap Equity E… | 49% | 0.07% | $2.03B | +16.5% | +22.2% |
| BKMC BNY Mellon US Mid Cap Core Equity ETF | 45% | 0.04% | $647.8M | +8.5% | +17.9% |
| DFAS Dimensional U.S. Small Cap ETF | 43% | 0.27% | $15.31B | +19.4% | +17.5% |
| FSMD Fidelity Small-Mid Multifactor ETF | 43% | 0.16% | $2.50B | +15.5% | +20.0% |
| EZM WisdomTree U.S. MidCap Fund | 42% | 0.38% | $938.6M | +13.8% | +18.1% |
| VB Vanguard Small Cap ETF | 41% | 0.05% | $188.70B | +16.1% | +19.7% |
Questions investors ask
Is ESML good for retirement?
ESML may suit retirees who want a smaller, higher-risk slice of their portfolio in U.S. small caps, but it is volatile. It fell 42% in early 2020. After the 2022 slump, it took about 21 months to get back to its old high. Its income is low: the yield was 0.94% as of October 27, 2026. Investors who may need to sell shares in a bad year are worth weighing that history.
What's the difference between ESML and VB?
Both hold U.S. small-company stocks, but ESML follows an MSCI index that removes tobacco, controversial weapons, civilian firearms and some fossil-fuel businesses, and leans toward companies with higher ESG ratings. Cost is the biggest gap. ESML charges 0.17% a year and Vanguard Small Cap ETF (VB) charges 0.05%. About 41% of their holdings overlap. Their one-year returns were close: 16.5% for ESML as of October 27, 2026, and 16.9% for VB as of October 29, 2026.
Does ESML pay dividends?
Yes. ESML pays dividends every three months. Over the 12 months to October 27, 2026, it paid about $0.50 per share, a yield of 0.94%. That is modest, because many small companies pay little or no dividend and put their cash back into the business. Investors who want the fund mainly for income may find the payouts small compared with dividend-focused funds.
What is ESML's expense ratio?
ESML's expense ratio is 0.17% a year, according to its prospectus filed December 19, 2025. In the SEC's standard example, a $10,000 investment earning 5% a year would cost about $17 after one year, $55 after three years, $96 after five years and $217 after ten years. That is close to the 0.16% average of similar funds but higher than Vanguard Small Cap ETF's 0.05%.
What are ESML's top holdings?
As of August 31, 2026, ESML's largest holding was Sandisk, at 3.3% of the fund. Next came Moderna (0.7%), US Foods (0.6%), Assurant (0.5%) and Ovintiv (0.5%). The fund held 902 stocks, and the top 10 made up only 7.5% of assets, so no single company drives results. The prospectus lists consumer goods and services, financials and industrials as the index's biggest sectors.