LCTU Profile
The BlackRock U.S. Carbon Transition Readiness ETF aims to provide investment results that exceed the performance of the Russell 1000 Index by focusing on companies that excel in low-carbon transition readiness. The fund utilizes BlackRock's proprietary research to select securities based on LCETR (Low Carbon Transition Readiness) scores, which assess how well companies are prepared for a transition to a low-carbon economy. This approach seeks to capture opportunities in firms demonstrating strong environmental stewardship and adaptation strategies.
The ETF is committed to investing at least 80% of its net assets in equity securities of companies listed in the United States. By focusing on U.S.-based issuers, the fund leverages the broad and dynamic nature of the domestic equity market while applying a rigorous selection process informed by BlackRock's research. This process emphasizes companies with high LCETR scores, reflecting their readiness to manage and mitigate carbon-related risks and opportunities.
The underlying index, a subset of the Russell 3000 Index, represents a segment of the broad U.S. equity market. It is specifically designed to measure the performance of companies that are evaluated for their readiness for a low-carbon transition. This index includes firms that are not only leaders in their respective sectors but also exhibit significant commitment to sustainable practices and carbon reduction.
As a non-diversified fund, the BlackRock U.S. Carbon Transition Readiness ETF may concentrate its investments in specific sectors or industries that are deemed to be more aligned with low-carbon transition goals. This concentrated approach can lead to higher volatility and greater fluctuations in performance compared to more diversified funds. Investors should be aware of these characteristics when considering the ETF as part of their investment strategy.
|
