EUSB Profile
The iShares ESG Advanced Total USD Bond Market ETF aims to provide comprehensive exposure to U.S. dollar-denominated, taxable bonds that meet stringent environmental, social, and governance (ESG) criteria. The fund tracks an index specifically designed to reflect the performance of bonds with favorable ESG ratings, while applying extensive screening processes to exclude those that do not meet the required standards. This approach ensures that the fund invests in bonds that align with responsible investing principles while offering broad market exposure.
The underlying index is a modified market value-weighted benchmark, encompassing a diverse range of bonds issued by various entities, including corporations and government bodies. By focusing on bonds with high ESG ratings, the index aims to integrate sustainability considerations into fixed income investments. The fund invests at least 90% of its assets in the securities that are part of the index or in investments with similar economic characteristics, ensuring that the fund's portfolio closely mirrors the index’s composition and performance.
In addition to its core investments, the fund may allocate up to 10% of its assets to certain financial instruments, including futures, options, and swap contracts, as well as cash and cash equivalents. This flexibility allows the fund to manage liquidity and implement its investment strategy effectively. While primarily focusing on index components, the fund may also invest in securities not included in the index, providing additional opportunities for diversification and performance enhancement.
As a non-diversified fund, the iShares ESG Advanced Total USD Bond Market ETF may hold concentrated positions in specific sectors or issuers, which can impact its risk and return profile. The emphasis on ESG criteria aligns with broader sustainability goals and provides investors with a tool to integrate responsible investing into their fixed income portfolios. The ETF’s strategy reflects a commitment to offering both financial performance and adherence to ESG principles, making it suitable for investors looking to balance yield with environmental and social impact considerations.
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