iShares MSCI EMU ESG Screened UCITS ETF EUR (ACC) Europe
| Issuer: iShares |
| Asset Class: Equity |
| TER: 12bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 23 Oct 2018 |
| Ticker: SAUM |
| ISIN: IE00BFNM3B99 |
This fund offers targeted exposure to the equity markets of countries within the European Economic and Monetary Union (EMU), commonly known as the Eurozone. It is designed to track a market-capitalisation-weighted index comprising large and mid-sized companies from developed economies that have adopted the euro. This provides a convenient way to invest in a diversified basket of leading European corporations, spanning key sectors such as financials, consumer discretionary, industrials, and information technology. The investment is structured for those seeking to capture the growth potential of the integrated Eurozone economy through a single, transparent instrument.
A primary feature of this specific share class is its currency hedging mechanism, which aims to neutralize the impact of fluctuations between the euro and the pound sterling on investment returns. This is particularly advantageous for sterling-based investors who wish to gain exposure to Eurozone assets without taking on the additional risk associated with foreign exchange rate movements. As an accumulating share class, any dividends paid by the underlying companies are automatically reinvested back into the fund. This strategy harnesses the power of compounding over the long term, potentially enhancing overall returns without creating taxable income events for the investor.
This product can serve as a core component for European equity allocation within a globally diversified portfolio. It is well-suited for investors with a long-term horizon who are optimistic about the economic prospects of the Eurozone but prefer to mitigate currency volatility. By providing access to established companies in a single, cost-effective transaction, it simplifies the process of investing in the region. The physical replication method ensures that the fund holds the actual shares of the index constituents, offering direct ownership and a high degree of transparency.
