SUSL Profile
The iShares ESG MSCI USA Leaders ETF aims to provide investors with exposure to U.S. companies that demonstrate strong environmental, social, and governance (ESG) practices. The fund is structured to invest at least 90% of its assets in the securities that make up its underlying index. This index, designed by MSCI, focuses on companies that have been identified as leaders in ESG performance among their peers, reflecting their commitment to sustainable and responsible business practices.
The underlying index is a free float-adjusted market capitalization-weighted benchmark that includes companies with high ESG ratings relative to their peers in the U.S. equity market. By investing in companies that are recognized for their superior ESG criteria, the index seeks to capture the performance of firms that not only contribute positively to societal and environmental goals but also demonstrate robust governance standards. This approach aims to provide investors with a portfolio aligned with contemporary sustainability and ethical investing trends.
The fund may also allocate up to 10% of its assets to various financial instruments such as futures, options, and swap contracts, in addition to cash and cash equivalents. These investments are intended to enhance the fund's ability to manage liquidity and optimize returns while maintaining alignment with the ESG-focused investment strategy. The strategic use of these instruments allows for flexibility in managing the fund's exposure to its underlying index.
As a non-diversified fund, the iShares ESG MSCI USA Leaders ETF focuses exclusively on companies that meet specific ESG criteria, which may lead to a concentrated exposure within the broader U.S. equity market. Investors should consider how this focus on ESG leaders aligns with their investment goals and risk tolerance. The fund provides a targeted way to invest in high-performing, ESG-conscious companies, reflecting growing investor interest in sustainable and ethical investment options.
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