EAGG Profile
The iShares ESG U.S. Aggregate Bond ETF is designed to provide investors with exposure to a broad range of U.S. investment-grade bonds while integrating environmental, social, and governance (ESG) criteria. The fund aims to mirror the performance of its underlying index by investing at least 90% of its assets in the securities that comprise the index, as well as in other investments with economic characteristics substantially similar to those of the index's components.
The index tracked by the fund encompasses a diverse array of fixed-income securities, including government-related bonds, corporate bonds, mortgage-backed securities (MBS), commercial mortgage-backed securities (CMBS), and asset-backed securities (ABS) that are publicly offered in the U.S. This extensive coverage allows the fund to capture a wide spectrum of the U.S. bond market while adhering to ESG principles. The focus on ESG integration means that the index and, consequently, the fund, select securities based on their adherence to specific ESG criteria, enhancing the sustainability and ethical alignment of the investment portfolio.
To ensure alignment with its investment objectives, the fund may also allocate up to 10% of its assets to futures, options, and swap contracts, as well as cash and cash equivalents. This flexibility allows the fund to manage its investment exposure and liquidity needs efficiently. Additionally, the fund has the capability to invest in securities not included in the index, providing room for strategic adjustments and opportunities that may arise outside the core index components.
By focusing on a broad range of U.S. bonds and incorporating ESG factors, the iShares ESG U.S. Aggregate Bond ETF offers investors a comprehensive solution for fixed-income exposure with an emphasis on sustainable and responsible investing. The fund's approach provides both income and stability while supporting broader ESG objectives, making it a suitable choice for those looking to align their bond investments with their values.
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