iShares MSCI USA ESG Enhanced UCITS ETF USD (Dist)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 7bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 12 Mar 2019 |
| Ticker: EEDS |
| ISIN: IE00BHZPJ890 |
This fund offers investors a core allocation to the U.S. equity market through a sustainability-focused lens. It is designed to provide exposure to a portfolio of U.S. large and mid-capitalisation companies that demonstrate strong Environmental, Social, and Governance (ESG) characteristics. The underlying strategy begins with a broad universe of U.S. stocks and then applies a series of screens to exclude companies involved in controversial sectors such as tobacco, controversial weapons, thermal coal, and oil sands. Following the exclusions, the remaining companies are re-weighted to favour those with higher ESG ratings, thereby enhancing the overall sustainability profile of the portfolio compared to the parent market.
A key feature of this investment vehicle is its alignment with the EU Climate Transition Benchmark (CTB) standards. This means the portfolio is constructed not only to improve its ESG score but also to meet specific climate-related objectives. It aims for a significant reduction in greenhouse gas emissions intensity compared to the broader market and is committed to a year-on-year self-decarbonization pathway of at least 7%. This dual approach of comprehensive ESG integration and a clear focus on climate transition makes the fund particularly suitable for investors aiming to build resilient portfolios that address climate risk and align with the goals of the Paris Agreement.
By investing in this product, individuals can gain broad exposure to the U.S. economy while tilting their investment towards companies that are considered leaders in corporate sustainability and better prepared for the transition to a low-carbon economy. It can function as a foundational holding for an ESG-conscious investor, offering a diversified, rules-based, and cost-effective way to access the U.S. market while actively supporting positive environmental and social outcomes.
