ESGU Profile
The iShares ESG Aware MSCI USA ETF is designed to provide investors with exposure to U.S. companies that exhibit strong environmental, social, and governance (ESG) practices. The fund targets companies that meet specific ESG criteria, aiming to align investors’ portfolios with their values while seeking to deliver competitive financial performance. Under normal conditions, the fund invests at least 90% of its assets in the securities that comprise the underlying index, ensuring a high degree of alignment with its ESG focus.
The underlying index for this ETF is an optimized equity index developed to capture the performance of U.S. companies with favorable ESG characteristics. This index is based on the MSCI USA Index but is adjusted to include companies that score higher on ESG factors. The optimization process ensures that the index maintains a representative exposure to the U.S. equity market while emphasizing firms with strong ESG practices, including robust environmental management, social responsibility, and effective governance.
In addition to its core equity investments, the fund has the flexibility to allocate up to 10% of its assets to futures, options, and swap contracts, as well as cash and cash equivalents. This provision allows the fund to manage liquidity and hedge against market risks while maintaining its commitment to ESG principles. This approach helps in managing the fund's exposure and operational needs without deviating from its ESG objectives.
Managed by iShares, a prominent provider of exchange-traded funds, this ETF underscores the firm’s dedication to integrating ESG factors into investment strategies. The fund’s focus on ESG-aware companies reflects a broader trend towards responsible investing, allowing investors to support firms with sustainable practices while pursuing their financial goals. By investing in the iShares ESG Aware MSCI USA ETF, investors can contribute to positive social and environmental impacts through their investment choices.
|
