SUSB Profile
The iShares ESG 1-5 Year USD Corporate Bond ETF is a specialized exchange-traded fund designed to provide investors with exposure to investment-grade corporate bonds while integrating environmental, social, and governance (ESG) criteria into its investment process. This fund focuses on corporate bonds with maturities ranging from one to five years, offering a balanced approach to fixed income investing with an emphasis on sustainability and corporate responsibility.
The fund adheres to a disciplined investment strategy where it allocates at least 90% of its total assets to the component securities of the underlying index. This index, developed by Bloomberg Finance L.P. and its affiliates, is specifically tailored to reflect the performance of corporate bonds that meet certain ESG standards. By focusing on bonds that adhere to these criteria, the ETF aims to support sustainable practices and socially responsible investing while providing exposure to a diverse range of high-quality corporate debt.
In addition to its core investment in corporate bonds, the iShares ESG 1-5 Year USD Corporate Bond ETF maintains the flexibility to allocate up to 10% of its assets to futures, options, swap contracts, cash, and cash equivalents. This allocation strategy allows the fund to manage liquidity, optimize portfolio returns, and mitigate risks associated with bond investments. The use of these financial instruments helps the fund adapt to changing market conditions and maintain alignment with its investment objectives.
The ESG-focused approach of the iShares ETF is indicative of a broader trend towards incorporating sustainability factors into investment decisions. By selecting bonds that meet rigorous ESG criteria, the fund not only seeks to deliver competitive returns but also contributes to positive social and environmental outcomes. This strategy reflects a growing demand for investments that align with ethical values and responsible corporate practices, making the ETF a compelling option for investors seeking to combine financial performance with social impact.
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