iShares MSCI Europe Consumer Discretionary Sector UCITS ETF (Acc)

Issuer: iShares

Asset Class: Equity

TER: 18bps

Trading Currency: GBP

Pays Income: False

Listing Date: 23 Nov 2020

Ticker: ESIC

ISIN: IE00BMW42298

This fund offers investors a core holding in European equities with a strong emphasis on sustainability. It is designed to track an index composed of large and mid-capitalization companies across developed European markets. The investment strategy is not merely to screen out undesirable sectors, but to actively enhance the portfolio's environmental, social, and governance (ESG) profile relative to a standard market benchmark. It achieves this by overweighting companies with robust ESG credentials and reducing exposure to those with lower scores or involvement in controversial business activities, such as thermal coal and oil sands extraction. This results in a portfolio tilted towards more sustainable businesses, aiming for a measurable improvement in ESG characteristics.

Furthermore, the underlying index is aligned with the stringent requirements of the EU Climate Transition Benchmark (CTB). This means the portfolio is constructed to achieve a significant reduction in carbon emissions intensity compared to the broader market and is committed to a year-on-year decarbonization pathway. For investors, this provides a dual benefit: gaining diversified exposure to the European economy while simultaneously supporting the transition to a lower-carbon future. The accumulating share class structure ensures that any dividends paid by the constituent companies are automatically reinvested back into the fund, which can compound returns over the long term and simplify portfolio management.