iShares MSCI Europe Health Care Sector UCITS ETF (Acc)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 18bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 23 Nov 2020 |
| Ticker: ESIH |
| ISIN: IE00BMW42181 |
This fund provides exposure to a diversified portfolio of European large and mid-capitalization companies, selected and weighted based on strong Environmental, Social, and Governance (ESG) characteristics. The investment strategy aims to maximize exposure to positive ESG factors while simultaneously reducing the portfolio's carbon intensity compared to the broader European market. It achieves this by tracking an index that overweights companies with higher ESG ratings and excludes or underweights those with poor ESG track records or involvement in controversial business sectors like tobacco, controversial weapons, and certain fossil fuels. The fund is physically replicated, meaning it holds the actual shares of the constituent companies, offering direct ownership in these European leaders in sustainability.
The product is designed for investors seeking to build a core European equity allocation within their portfolio while adhering to sustainable and responsible investing principles. It appeals to those who wish to align their financial goals with their values, focusing on companies that demonstrate superior management of ESG-related risks and opportunities. As an accumulating share class, it automatically reinvests all dividends paid by the underlying companies back into the fund. This process facilitates the compounding of returns over the long term and can be a tax-efficient strategy for investors not seeking regular income, making it a convenient 'set and forget' option for growth-oriented portfolios.
While the ESG focus may reduce exposure to certain long-term risks, investors should be aware of potential performance deviations from the broader non-ESG market. The fund's returns could lag if excluded sectors or companies perform exceptionally well. As an equity instrument, its value is subject to the inherent volatility and risks of the stock market, including economic and political events affecting Europe. For investors whose home currency is not the Euro, currency fluctuations will also introduce an additional layer of risk to the investment returns.
