ISHARES MSCI WORLD ESG ENHANCED UCITS ETF USD (DIST)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 20bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 12 Mar 2019 |
| Ticker: EEWD |
| ISIN: IE00BG11HV38 |
This financial instrument offers investors a core holding in global developed equity markets with a robust Environmental, Social, and Governance (ESG) framework. It is designed for those looking to align their investment portfolio with sustainability values without sacrificing broad market diversification. The strategy aims to provide exposure to a portfolio of large and mid-capitalization companies across developed countries that demonstrate strong ESG profiles. By integrating these non-financial factors, the investment seeks to identify well-managed companies that may be better positioned for long-term growth and resilience in a rapidly changing world.
The underlying portfolio is constructed by tracking an index that systematically overweights companies with higher ESG ratings and underweights those with lower ratings, relative to the parent MSCI World index. It also implements specific exclusions, removing companies involved in controversial business activities such as tobacco, controversial weapons, and thermal coal. A key feature is its alignment with the EU's Climate Transition Benchmark (CTB) requirements, which involves a significant reduction in carbon emissions intensity compared to the broader market and a clear year-on-year decarbonization trajectory. This focus on climate risk and opportunity provides a forward-looking approach to portfolio construction.
This product is suitable for investors seeking a foundational, globally diversified equity position that incorporates responsible investment principles. It combines the low-cost, transparent benefits of passive investing with an enhanced, rules-based approach to sustainability. The distributing share class structure also provides the potential for regular income, making it a versatile tool for long-term wealth accumulation while contributing to a more sustainable global economy. It can serve as the central building block in a modern, conscientious investment portfolio.
