CRBN Profile
The
iShares MSCI ACWI Low Carbon Target ETF (CRBN) is an exchange-traded
fund (ETF) that seeks to track the investment results of an index
composed of large- and mid-capitalization developed and emerging
market equities with a lower carbon exposure than the broad market.
The fund aims to provide exposure to companies with lower greenhouse
gas emissions relative to their sector peers while maintaining a
similar risk and return profile to the broad market.
CRBN was
launched on December 12, 2014, and has since grown to over $7 billion
in assets under management. The ETF is designed to align with the
United Nations Sustainable Development Goals and is meant to provide
investors with a tool to reduce their carbon footprint while still
investing in a broad range of global equities.
The fund's index
methodology utilizes carbon footprint data to identify companies with
lower carbon exposure than their peers. The index also incorporates
additional environmental, social, and governance (ESG) criteria,
including controversies related to business practices and human rights
violations, to screen out companies with poor sustainability records.
CRBN holds approoximately 1,200 stocks across a broad range of
sectors and regions, with a tilt towards consumer staples, healthcare,
and technology. As of March 23, 2023, the top holdings of the ETF
include Apple Inc., Microsoft Corporation, Amazon.com Inc., Alphabet
Inc., and Facebook Inc.
Investing in CRBN allows investors to
gain exposure to a diversified basket of companies with a lower carbon
footprint, potentially reducing the impact of their investment
portfolios on the environment. The ETF also provides exposure to
companies with strong ESG practices and an alignment with the United
Nations Sustainable Development Goals.
However, investors
should be aware that CRBN's focus on low-carbon exposure may result in
underperformance compared to the broader market during periods when
carbon-intensive sectors are outperforming. Additionally, the ETF's
fees are relatively high compared to some other passive ESG funds. As
with any investment, investors should carefully consider their
investment objectives and risk tolerance before investi
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