PABU Profile
The iShares Paris-Aligned Climate MSCI USA ETF is designed to align with the climate objectives set forth in the Paris Agreement by focusing on U.S. large- and mid-capitalization stocks. The underlying index of the fund is meticulously constructed to select and weight these stocks in a manner that adheres to a decarbonization trajectory, ensuring that the portfolio's overall carbon footprint is reduced in line with global climate goals. This strategic approach helps investors support and invest in companies that are making substantial efforts toward reducing their environmental impact.
Under normal market conditions, the fund allocates at least 90% of its total assets to the component securities of its underlying index. This substantial investment in index components ensures that the fund maintains close tracking of the index's performance while adhering to its climate-aligned objectives. The selection process emphasizes companies that are proactively engaged in lowering their carbon emissions and implementing sustainable practices.
The fund’s commitment to climate alignment reflects its broader mission to support sustainable investing by focusing on companies that are well-positioned to thrive in a low-carbon economy. By investing in companies that are aligned with Paris Agreement targets, the fund aims to contribute to global efforts to limit the rise in average global temperatures to well below 2 degrees Celsius above pre-industrial levels.
As a non-diversified fund, the iShares Paris-Aligned Climate MSCI USA ETF offers a focused investment strategy concentrated on U.S. stocks that meet strict decarbonization criteria. This concentrated approach allows investors to target companies leading in sustainability while managing exposure to broader market risks. Through its alignment with climate objectives, the fund provides an opportunity for investors to participate in the transition to a more sustainable and environmentally conscious economy.
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