ESGD Profile
The iShares ESG Aware MSCI EAFE ETF is designed to offer investors exposure to developed market equities with a strong emphasis on environmental, social, and governance (ESG) factors. The fund aims to invest at least 90% of its assets in securities that are part of its underlying index or have similar economic characteristics. This strategy ensures that the ETF closely tracks the performance of its benchmark while focusing on companies that meet specific ESG criteria.
The underlying index for this ETF is the MSCI EAFE ESG Focus Index, which includes large- and mid-capitalization stocks from developed markets outside the United States and Canada. This index is carefully curated to highlight companies with positive ESG characteristics, as determined by the index provider. By focusing on ESG criteria, the index excludes firms that do not meet its sustainability standards, thereby offering a refined selection of equities that are both financially sound and aligned with responsible investing principles.
The ETF's investment approach incorporates ESG considerations by selecting companies that demonstrate strong performance in environmental stewardship, social responsibility, and governance practices. The goal is to provide investors with a portfolio that not only aims for attractive financial returns but also supports sustainable and ethical business practices. This is achieved while maintaining risk and return characteristics comparable to the parent index, ensuring that the fund remains a viable option for those seeking both growth and responsible investment exposure.
As an investment vehicle focused on developed markets outside the U.S. and Canada, the iShares ESG Aware MSCI EAFE ETF allows investors to diversify their portfolios geographically while adhering to ESG principles. By excluding companies that do not meet the stringent ESG criteria, the ETF offers a targeted approach to responsible investing in international markets. This makes it a compelling choice for investors looking to balance their commitment to sustainability with their investment goals.
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