The issuer of the ELQD ETF is BlackRock Fund Advisors (BFA). BFA employs an indexing approach to achieve the fund's investment objective, which is to track the performance of the iBoxx MSCI ESG Advanced USD Liquid Investment Grade Index. This index, developed by Markit Indices Limited in collaboration with MSCI ESG Research LLC, applies climate-based and values-based screens to the Markit iBoxx USD Liquid Investment Grade Index, selecting issuers with above-average ESG ratings relative to their sector peers. BFA employs a representative sampling indexing strategy and aims to minimize portfolio turnover while investing at least 80% of its assets in component securities of the Underlying Index. The ELQD ETF provides investors with exposure to investment-grade corporate bonds while adhering to ESG criteria and minimizing active management risks.
While ELQD primarily centers its strategy on corporate bonds, it also engages in dividend distribution in alignment with the performance of its underlying assets. The eligibility and distribution of dividends in ELQD are subject to the individual dividend policies and performances of the corporations within its bond portfolio. Investors can anticipate periodic distributions, providing an additional dimension to ELQD's appeal for those seeking a balance between fixed income exposure and potential dividend returns. ELQD's diversified approach to corporate bonds may offer investors a unique combination of income and stability in their investment portfolios.
The ELQD ETF is designed to track the investment results of the iBoxx MSCI ESG Advanced USD Liquid Investment Grade Index, which is developed by Markit Indices Limited in collaboration with MSCI ESG Research LLC. This index applies climate-based and values-based screens to the Markit iBoxx USD Liquid Investment Grade Index, selecting issuers with above-average ESG ratings relative to their sector peers. It is a modified market value-weighted index that caps each issuer's weight at 3% during monthly rebalancing. The ELQD ETF excludes issuers tied to fossil fuels, controversial business activities, and those with low ESG ratings, providing investors with a way to access a portfolio of investment-grade corporate bonds that align with ESG principles. The ETF aims to maintain a similar investment profile to its underlying index by investing in a representative sample of securities, seeking to minimize tracking error and achieve lower costs and better after-tax performance compared to actively managed alternatives.
The correlation aspect of the iShares ESG Advanced USD Corporate Bond ETF (ELQD) is primarily influenced by its tracking of the iBoxx MSCI ESG Advanced USD Liquid Investment Grade Index. As ELQD follows this ESG-focused index, it is expected to exhibit a strong correlation with investment-grade corporate bonds that meet specific ESG criteria. The fund's correlation is driven by its exclusion of issuers tied to fossil fuels and controversial industries while favoring those with above-average ESG ratings. Investors interested in understanding ELQD's correlation can utilize ETF Insider's web app, which provides in-depth data and visualizations to analyze correlations with other US ETFs, helping them make informed investment decisions and identify overlaps within their portfolios.
The ELQD ETF focuses on tracking the investment results of the iBoxx MSCI ESG Advanced USD Liquid Investment Grade Index, which incorporates environmental, social, and governance (ESG) factors in its selection process. This ETF invests primarily in investment-grade corporate bonds issued by companies domiciled in developed markets, with an emphasis on those with above-average ESG ratings compared to their sector peers. It applies climate-based and values-based screens to exclude issuers involved in fossil fuels, controversial activities, and low ESG controversies scores. As of the most recent data, ELQD is concentrated in the financials, healthcare, and technology sectors, offering investors a socially responsible approach to fixed income investing while maintaining a focus on these key industries.
The exposure characteristic of the iShares ESG Advanced USD Corporate Bond ETF (ELQD) is rooted in its focus on environmentally, socially, and governance (ESG) screened investment grade corporate bonds in the United States. This ETF seeks to track the iBoxx MSCI ESG Advanced USD Liquid Investment Grade Index, emphasizing bonds issued by companies with above-average ESG ratings relative to their sector peers. ELQD''s exposure aligns with responsible investing principles, providing investors with a portfolio that integrates ESG considerations while maintaining the characteristics of investment grade corporate bonds.
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