ESMV Profile
The iShares ESG MSCI USA Min Vol Factor ETF aims to offer investors exposure to U.S. equity securities with a focus on minimizing volatility while integrating strong environmental, social, and governance (ESG) criteria. The fund tracks an index designed to capture the performance of large- and mid-cap U.S. stocks that exhibit lower volatility compared to the broader MSCI USA Index. In addition to its focus on minimizing volatility, the index selects stocks with higher favorable ESG characteristics and reduced carbon exposure.
The ETF invests at least 90% of its assets in the component securities of its underlying index, which reflects a minimum volatility strategy while prioritizing ESG factors. This approach ensures that the fund maintains a portfolio aligned with both reduced risk and sustainable investment principles. By focusing on companies with lower volatility, the ETF aims to provide more stable returns while emphasizing ESG criteria that promote environmental sustainability and responsible corporate practices.
The underlying index also incorporates rigorous ESG standards, selecting companies that demonstrate superior performance in areas such as carbon management and social responsibility. This ESG integration is intended to align the ETF with broader sustainability goals while offering investors a way to manage risk through a minimum volatility approach. The fund may also allocate up to 10% of its assets to various financial instruments such as futures, options, and swap contracts, as well as cash and cash equivalents, to support its investment strategy and manage liquidity.
As a non-diversified fund, the iShares ESG MSCI USA Min Vol Factor ETF may hold concentrated positions in certain sectors or securities, which can impact its risk and return profile. The ETF’s strategy reflects a commitment to balancing low volatility with strong ESG performance, making it an attractive option for investors seeking to integrate sustainability considerations into their U.S. equity investments while aiming for reduced volatility and more stable returns.
|
