BlackRock Institutional Trust Company, N.A. serves as the issuer of the ESGD ETF. The fund seeks to mirror the investment results of the MSCI EAFE Extended ESG Focus Index, designed by MSCI Inc. The underlying index emphasizes companies in developed markets (excluding the U.S. and Canada) exhibiting favorable environmental, social, and governance (ESG) characteristics while maintaining risk and return profiles akin to the MSCI EAFE Index.
Although the primary objective of the iShares ESG Aware MSCI EAFE ETF (ESGD) is to track the performance of the MSCI EAFE Extended ESG Focus Index, which comprises developed market companies with favorable environmental, social, and governance (ESG) characteristics, it may offer dividend distributions. The dividend eligibility within ESGD is influenced by the dividend policies of the constituent companies within the index. As ESGD focuses on ESG-conscious investments, dividend distribution may vary based on the performance and dividend policies of companies meeting these criteria, providing investors with both sustainability focus and potential income generation.
ESGD Tracking involves following the MSCI EAFE Extended ESG Focus Index, which focuses on developed market companies (excluding the U.S. and Canada) with favorable environmental, social, and governance (ESG) characteristics. This index aims to maintain risk and return profiles similar to the broader MSCI EAFE Index while excluding companies involved in controversial activities like tobacco, civilian firearms, and certain fossil fuel-related activities. The index employs a quantitative process to optimize weights for securities based on their ESG ratings and exposure to key ESG issues within their industries. As of August 31, 2023, the index comprised companies from 21 developed market countries or regions, predominantly from the financials and industrials sectors. The ETF seeks to replicate the performance of this index by investing in a representative sample of its component securities, aiming to provide investors with exposure to ESG-focused developed market equities.
The correlation aspect of the iShares ESG Aware MSCI EAFE ETF (ESGD) is crucial in understanding its relationship with the broader market while also considering its ESG focus. Given its tracking of the MSCI EAFE Extended ESG Focus Index, ESGD's correlation reflects the performance of developed market companies with favorable environmental, social, and governance characteristics. Investors often analyze ESGD's correlation with traditional indices and other ESG-focused ETFs to gauge its impact on socially responsible investing strategies. To delve deeper into these correlations and understand their implications, investors can leverage ETF Insider's web app, which offers comprehensive data visualization tools to identify overlaps and trends within the ESG investing landscape.
The iShares ESG Aware MSCI EAFE ETF (ESGD) focuses on tracking the MSCI EAFE Extended ESG Focus Index. This index comprises developed market companies outside the U.S. and Canada, emphasizing favorable environmental, social, and governance (ESG) characteristics. Companies involved in controversial industries such as tobacco, weapons, and certain fossil fuels are excluded from the index. ESGD's portfolio is designed to reflect industries with robust ESG practices, which may include significant representation from financials and industrials. By aligning with ESG principles, investors in ESGD seek exposure to companies with sustainable business practices while aiming to achieve returns similar to the broader market.
The iShares ESG Aware MSCI EAFE ETF (ESGD) is designed to track the MSCI EAFE Extended ESG Focus Index, which prioritizes companies with favorable environmental, social, and governance (ESG) characteristics across developed markets, excluding the U.S. and Canada. This ETF offers exposure to companies exhibiting strong ESG practices while maintaining risk and return profiles similar to the broader MSCI EAFE Index. As of August 31, 2023, the underlying index comprised securities from 21 developed market countries or regions, with a significant portion represented by companies in the financials and industrials sectors. ESGD provides investors with a way to align their investments with ESG values while gaining exposure to international markets.
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