USXF Profile
The iShares ESG Advanced MSCI USA ETF is designed to provide exposure to U.S. large- and mid-cap companies that exhibit strong environmental, social, and governance (ESG) characteristics. The fund tracks an underlying index that is a free float-adjusted market capitalization-weighted benchmark. This index specifically targets companies with high ESG ratings while excluding those involved in fossil fuels and other sectors deemed incompatible with advanced ESG criteria.
To align with its ESG focus, the index employs a comprehensive set of screens to ensure that only companies with favorable ESG profiles are included. This process involves excluding firms based on various sustainability and ethical standards, such as fossil fuel exposure, thereby refining the investment universe to those businesses that adhere to stringent ESG norms. The goal is to capture the performance of companies that not only exhibit strong financial metrics but also lead in responsible business practices.
The fund generally invests at least 90% of its assets in the component securities of the underlying index. This high level of investment in index constituents aims to closely mirror the performance of the ESG-focused benchmark while maintaining a commitment to ethical and sustainable investment practices. By concentrating on companies that excel in ESG factors, the fund seeks to provide investors with both competitive financial returns and alignment with their values.
As a non-diversified fund, the iShares ESG Advanced MSCI USA ETF is concentrated in a specific segment of the equity market—large- and mid-cap U.S. companies with advanced ESG profiles. This focus allows the fund to maintain a targeted investment approach, but also means that its performance may be influenced by the characteristics and risks associated with its ESG criteria. Investors looking for a blend of financial performance and ethical investing will find this fund aligns with their investment objectives.
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