BlackRock Institutional Trust Company, N.A., acts as the issuer for the iShares MSCI USA Small-Cap Extended ESG Focus ETF (ESML). Established by BlackRock, Inc., one of the world's largest asset management firms, ESML aims to mirror the performance of the MSCI USA Small Cap Extended ESG Focus Index. This ETF is designed to provide investors with exposure to small-cap U.S. stocks while emphasizing companies with favorable environmental, social, and governance (ESG) profiles, aligning with the growing interest in sustainable investing strategies.
Although the primary focus of the iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is on tracking the performance of the MSCI USA Small Cap Extended ESG Focus Index, it also reflects dividend distributions from its underlying assets. As an ETF investing in small-cap companies with favorable ESG profiles, ESML follows a dividend distribution schedule influenced by the dividend policies and performances of its constituent companies. Investors can expect dividends from ESML on a regular basis, reflecting the dividend-paying capabilities of the small-cap companies within its portfolio, while also aligning with ESG principles.
ESML tracks the MSCI USA Small Cap Extended ESG Focus Index, developed by MSCI Inc. This index optimally mirrors the MSCI USA Small Cap Index while emphasizing companies with favorable ESG profiles. The ETF excludes businesses involved in tobacco, controversial weapons, civilian firearms, and certain fossil fuels-related activities. Additionally, it avoids companies embroiled in severe ongoing controversies. ESML's investment strategy involves a quantitative process to maximize exposure to high ESG-rated companies while maintaining risk-return characteristics similar to the parent index.
The correlation dynamics of the iShares MSCI USA Small-Cap Extended ESG Focus ETF (ESML) are pivotal for understanding its performance concerning small-cap U.S. equities with an extended focus on environmental, social, and governance (ESG) criteria. As ESML tracks the MSCI USA Small Cap Extended ESG Focus Index, investors can expect its correlation to be influenced by both the small-cap segment of the U.S. equity market and companies with favorable ESG profiles. This correlation makes ESML a valuable tool for investors interested in socially responsible investing and seeking exposure to small-cap stocks with strong ESG credentials.
The ESML ETF focuses on tracking the performance of the MSCI USA Small Cap Extended ESG Focus Index, emphasizing companies with favorable environmental, social, and governance (ESG) profiles. This sector comprises businesses engaged in the production of goods used in construction, manufacturing, and industrial operations. By investing in industrials, the ETF offers exposure to companies involved in manufacturing, aerospace, defense, machinery, and other related industries. With an emphasis on ESG criteria, ESML aims to align investor interests with sustainable and responsible investment practices within the industrials sector. However, investors should consider that sector concentration may increase volatility and specific risk exposure within this ETF.
The exposure characteristic of the iShares MSCI USA Small-Cap Extended ESG Focus ETF (ESML) underscores its commitment to investing in small-cap companies within the U.S. equity market while adhering to ESG (Environmental, Social, and Governance) principles. By tracking the MSCI USA Small Cap Extended ESG Focus Index, ESML offers investors an opportunity to participate in the growth potential of smaller companies with favorable ESG profiles. With a focus on excluding securities involved in controversial activities like tobacco and firearms, as well as promoting companies with robust ESG practices, ESML's exposure aligns with investors seeking socially responsible investment opportunities. As ESML's composition evolves over time, investors can leverage tools like ETF Insider to explore its exposure to different sectors, ensuring alignment with their investment objectives and values.
ETF Insider is a data-driven portfolio analytics and optimization platform that introduces a more efficient and practical way to visualize, analyze and optimize portfolios.
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4 min readWe'll undertake a comparison of two prominent bond ETFs: TLT (iShares 20+ Year Treasury Bond ETF) and TLTW (iShares Treasury Floating Rate Bond ETF).
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
