ESGE Profile
The iShares ESG Aware MSCI Emerging Markets ETF aims to provide investors with exposure to emerging market equities while integrating environmental, social, and governance (ESG) factors into its investment strategy. The fund generally allocates at least 90% of its assets to the component securities of the underlying index, or to investments that share similar economic characteristics with these securities. This commitment ensures that the fund closely mirrors the performance of the index it tracks.
The underlying index is an optimized equity benchmark that captures the performance of companies from emerging markets with favorable ESG characteristics. This index is designed to align with the risk and return profiles of the MSCI Emerging Markets Index, but with an emphasis on companies that meet specific ESG criteria. The index methodology focuses on identifying companies with strong ESG practices, which are believed to potentially offer better long-term performance and sustainability.
The ESG Aware MSCI Emerging Markets ETF provides a way for investors to engage with emerging markets while adhering to responsible investment principles. By focusing on companies that score well on ESG metrics, the fund seeks to mitigate certain risks and potentially enhance returns through a portfolio of firms that demonstrate strong governance and sustainable practices. This approach reflects a growing trend in investment strategies that incorporate ESG considerations as a key component.
Investors in this fund gain diversified exposure to emerging markets with an added layer of ESG scrutiny. The ETF is structured to deliver a similar performance profile to the broader MSCI Emerging Markets Index, while tilting the portfolio towards companies with positive ESG attributes. This provides a dual benefit of capturing emerging market growth potential and aligning investment choices with ethical and sustainable principles.
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