LDEM Profile
The iShares ESG MSCI EM Leaders ETF seeks to provide investment results that closely correspond to the performance of the MSCI Emerging Markets ESG Leaders Index. Under normal market conditions, the fund invests at least 90% of its assets in the securities that are part of the underlying index or in investments with similar economic characteristics. This strategy ensures that the fund's holdings closely mirror those of the index, which focuses on emerging market companies demonstrating strong environmental, social, and governance (ESG) practices.
The MSCI Emerging Markets ESG Leaders Index is designed to reflect the performance of companies in emerging markets that exhibit leading ESG characteristics. This index is constructed using a free float-adjusted market capitalization weighting methodology, emphasizing firms that excel in areas such as sustainability, corporate governance, and social responsibility. By focusing on these criteria, the index aims to capture the performance of companies that are expected to deliver superior long-term returns while adhering to high ESG standards.
The ETF provides investors with exposure to a diversified portfolio of emerging market equities that meet stringent ESG criteria. These criteria include factors such as reduced carbon emissions, enhanced labor practices, and effective governance structures. The selection process for the index incorporates MSCI's comprehensive ESG ratings and analysis, which evaluate companies based on their environmental impact, social responsibility, and governance practices.
As a non-diversified fund, the iShares ESG MSCI EM Leaders ETF may have concentrated holdings within certain sectors or regions of the emerging markets, potentially leading to increased volatility. Investors should be aware of this characteristic when considering the ETF for their investment portfolios. The fund's focus on ESG criteria reflects a growing trend towards responsible investing, aligning with global efforts to promote sustainable and ethical business practices.
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