XVV Profile
The iShares ESG Screened S&P 500 ETF is designed to track the performance of the S&P 500 Sustainability Screened Index, which provides a measure of the large-cap U.S. equity market while incorporating environmental, social, and governance (ESG) criteria. The index specifically excludes companies engaged in controversial activities or controversies, as identified by S&P Dow Jones Indices LLC. This focus on sustainability allows the ETF to align with socially responsible investment goals while maintaining broad exposure to large-cap U.S. equities.
The fund employs a representative sampling indexing strategy, whereby it invests in a selection of securities that collectively represent the broader index. This approach aims to replicate the performance of the S&P 500 Sustainability Screened Index while efficiently managing portfolio diversification and liquidity. By utilizing this strategy, the fund seeks to provide investors with an investment vehicle that adheres to ESG principles without compromising on market representation.
In managing the fund, BlackRock Fund Advisors (BFA) carefully constructs the portfolio to reflect the ESG criteria set forth by the underlying index. The screening process involves a thorough evaluation of company practices and controversies, ensuring that only those meeting specific sustainability and ethical standards are included in the fund. This meticulous approach supports the fund's objective of providing exposure to large-cap U.S. companies that align with responsible investment values.
The iShares ESG Screened S&P 500 ETF is categorized as non-diversified, focusing its investments on the subset of the S&P 500 Index that meets ESG screening criteria. This concentration allows the fund to target companies with strong sustainability profiles while excluding those involved in activities deemed controversial. As a result, investors seeking to integrate ESG considerations into their portfolios can access a broad range of large-cap U.S. stocks with a commitment to ethical and sustainable practices.
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