iShares MSCI USA SRI UCITS ETF GBP Hedged (Dist)

Issuer: iShares

Asset Class: Equity

TER: 23bps

Trading Currency: GBP

Pays Income: False

Listing Date: 25 May 2021

Ticker: SUAP

ISIN: IE00BMWPV470

This fund offers targeted exposure to US companies that demonstrate strong Environmental, Social, and Governance (ESG) characteristics. It employs a Socially Responsible Investing (SRI) approach by tracking an index that screens for best-in-class ESG performers while explicitly excluding firms involved in controversial sectors such as civilian firearms, controversial weapons, tobacco, thermal coal, and oil sands. The strategy aims to capture the performance of US large- and mid-cap equities that align with specific values-based criteria, providing a core portfolio holding for investors looking to integrate sustainability into their US market allocation without sacrificing broad market representation.

By focusing on companies with high SRI ratings, the investment seeks to capitalize on the long-term potential of businesses that are well-positioned for a sustainable future. These companies are often considered to be better managed and more resilient to a wide range of operational and reputational risks. The fund's underlying index is also designed to reduce exposure to fossil fuels, appealing to investors concerned about climate-related transition risks. This responsible investment approach provides a pathway to access the growth potential of the world's largest economy while adhering to stringent ethical and sustainability standards.

Furthermore, this particular share class incorporates a currency hedging strategy. It aims to minimize the impact of fluctuations between the US Dollar and the Pound Sterling. This is a significant feature for investors based in the UK, as it helps to reduce the volatility that can arise from currency movements, ensuring that the investment returns are more closely tied to the performance of the underlying US stocks rather than foreign exchange market dynamics.