iShares MSCI USA Small Cap UCITS ETF USD (Acc)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 43bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 15 Sep 2010 |
| Ticker: CUS1 |
| ISIN: IE00B3VWM098 |
This fund offers investors targeted exposure to the U.S. small-capitalization equity market through a sustainability-focused lens. By tracking an ESG-enhanced and climate-aware index, it provides a portfolio of smaller American companies that have been screened for positive environmental, social, and governance characteristics. The strategy is designed for those who want to capture the growth potential inherent in the small-cap segment while simultaneously aligning their investments with principles of corporate responsibility and climate action. It goes beyond simple market-cap weighting to build a portfolio that reflects both financial and ethical considerations.
The investment's methodology is rooted in the MSCI USA Small Cap ESG Enhanced Focus CTB Index, which is constructed to meet the stringent requirements of the EU's Climate Transition Benchmark (CTB). This involves significantly reducing the portfolio's carbon intensity and excluding companies engaged in controversial sectors such as tobacco, thermal coal, and certain weapons. Concurrently, the index overweights companies with stronger ESG profiles relative to their peers. This dual approach of negative screening and positive tilting results in a portfolio that is not only positioned for the transition to a low-carbon economy but also favors companies with robust governance and social practices.
Investing in U.S. small-cap companies offers distinct advantages, including the potential for higher long-term growth compared to their large-cap counterparts and a closer correlation with the health of the domestic U.S. economy. This fund combines these traditional benefits with a modern, forward-looking ESG framework. It is a compelling choice for investors seeking to add a dynamic and socially conscious component to their portfolio, providing a way to invest in the innovative engine of the American economy without compromising on sustainability objectives.
