iShares DIGITAL SECURITY UCITS ETF (DIST)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 40bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 01 Nov 2018 |
| Ticker: SHLD |
| ISIN: IE00BG0J4841 |
This actively managed fund offers exposure to the global high-yield corporate bond market, with a specific focus on integrating environmental, social, and governance (ESG) criteria. The primary objective is to maximize total return through a combination of income and capital appreciation. The investment manager has the flexibility to select bonds from various issuers, sectors, and regions, aiming to identify attractive opportunities within the sub-investment grade credit spectrum. By not being tied to a specific benchmark, the strategy can adapt to changing market conditions, potentially mitigating risks or capitalizing on specific trends within the high-yield universe.
The ESG integration is a core component of the investment process. The fund applies specific screens to exclude companies involved in controversial business activities, such as thermal coal, oil sands, tobacco, and certain types of weapons. Furthermore, it seeks to invest in issuers that demonstrate stronger ESG characteristics compared to their peers. This approach aims to build a portfolio with a higher overall ESG rating and a lower carbon footprint than the broader high-yield market, appealing to investors who wish to align their financial goals with sustainability principles without compromising on the search for attractive yields.
Within a diversified portfolio, this instrument can serve as a source of enhanced income and potential capital growth. It is suitable for investors with a higher risk tolerance, as high-yield bonds are more sensitive to economic downturns and issuer defaults than investment-grade debt. The currency-hedged share class is specifically designed to minimize the impact of exchange rate fluctuations between the underlying bond currencies and the investor's reference currency, making it an appropriate choice for those looking to add a global high-yield allocation while managing currency risk.
