XJR Profile
The iShares ESG Screened S&P Small-Cap ETF is designed to track the performance of an index that represents the small-cap segment of the U.S. equity market, while incorporating environmental, social, and governance (ESG) considerations. This fund aims to provide investors with exposure to smaller U.S. companies that meet specific ESG criteria, as set forth by S&P Dow Jones Indices LLC. The underlying index excludes companies involved in controversial business activities and controversies, thereby aligning with sustainable investment principles.
The ETF focuses on small-cap stocks, which are typically characterized by their growth potential and higher volatility compared to larger companies. The investment strategy of this fund involves identifying and including only those small-cap companies that adhere to ESG standards, effectively screening out businesses that do not meet these criteria. This approach allows investors to support companies that are not only financially sound but also align with broader ethical and sustainability goals.
Under normal market conditions, the iShares ESG Screened S&P Small-Cap ETF allocates its assets in accordance with the ESG-focused index, which excludes firms involved in activities such as tobacco production, controversial weapons, and fossil fuels, among others. The fund's non-diversified nature implies a concentrated exposure to the selected small-cap stocks that meet ESG criteria, potentially leading to sector-specific or company-specific risks while striving for enhanced ethical compliance.
This ETF offers investors a method to access the growth opportunities of the small-cap market while adhering to ESG principles. By focusing on companies that meet strict sustainability and ethical standards, the fund seeks to attract those who are interested in integrating responsible investing practices with their investment strategy. The iShares ESG Screened S&P Small-Cap ETF reflects a growing trend in the financial industry towards aligning investments with social and environmental values.
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