SUSC Profile
The iShares ESG USD Corporate Bond ETF is an exchange-traded fund designed to provide investors with exposure to investment-grade corporate bonds while incorporating environmental, social, and governance (ESG) criteria into its investment strategy. This fund focuses on bonds issued by U.S. corporations that meet specific ESG standards, aiming to offer both financial returns and alignment with sustainable investment principles.
The fund is structured to invest at least 90% of its total assets in the component securities of its underlying index, which consists of corporate bonds that have been selected based on their adherence to ESG factors. The index is constructed to reflect the performance of a broad range of high-quality, U.S. dollar-denominated corporate bonds, with an emphasis on issuers that demonstrate strong ESG practices. This approach aligns with the growing demand for investments that not only yield returns but also contribute positively to social and environmental outcomes.
In addition to its core holdings in index securities, the iShares ESG USD Corporate Bond ETF may allocate up to 10% of its assets to various financial instruments, including futures, options, and swap contracts, as well as cash and cash equivalents. This flexibility allows the fund to manage liquidity, hedge risks, and adjust its portfolio in response to market conditions. Additionally, the fund may invest in securities not included in the index if these investments are deemed beneficial by BlackRock Fund Advisors (BFA) for tracking the index and achieving the fund’s investment objectives.
The integration of ESG criteria into the fund's investment process reflects a broader commitment to responsible investing and sustainable finance. By focusing on corporate bonds from issuers with strong ESG performance, the iShares ESG USD Corporate Bond ETF caters to investors who seek to align their portfolios with ethical standards while pursuing stable income from high-quality corporate debt. This approach underscores the fund’s role in promoting sustainable business practices and supporting positive societal impact through investment choices.
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