The PABU ETF is managed by BlackRock Fund Advisors (BFA) and aims to track the investment results of the MSCI USA Climate Paris Aligned Benchmark Extended Select Index, developed by MSCI Inc. This index is designed to align with the objectives of the Paris Agreement by focusing on decarbonization, reducing climate-related risks, and promoting a transition to a low-carbon economy. The index applies various sustainability-related constraints, including reducing greenhouse gas intensity, increasing exposure to green revenue, and promoting credible emissions targets. BFA utilizes a passive indexing approach and representative sampling strategy to manage the fund, seeking to minimize tracking error and achieve lower costs for investors. As of August 31, 2022, the Underlying Index is significantly represented by healthcare and technology sectors, with a focus on companies with favorable positions for the low-carbon transition.
The PABU ETF (PABU) focuses on tracking the MSCI USA Climate Paris Aligned Benchmark Extended Select Index, which emphasizes decarbonization and aligning with the objectives of the Paris Agreement. While dividends may not be the primary focus, PABU reflects the dividend distribution of its underlying index. Dividend distributions typically follow a schedule determined by the constituent companies' individual dividend policies and performances. Additionally, PABU's selection process excludes certain companies involved in controversial activities and monitors environmental, social, and governance (ESG) controversies, which can impact dividend eligibility. As a result, investors may expect dividend distributions from companies that are favorably positioned for the transition to a low-carbon economy.
Tracking the MSCI USA Climate Paris Aligned Benchmark Extended Select Index is the primary objective of the PABU Tracking ETF. This index is meticulously designed by MSCI Inc. to align with the goals of the Paris Agreement, aiming to reduce greenhouse gas intensity and transition towards a low-carbon economy. The ETF holds U.S. large- and mid-cap stocks, excluding companies involved in tobacco, controversial weapons, nuclear weapons, and certain climate-related activities, while optimizing sustainability factors and maintaining sector weights similar to the parent index. PABU Tracking provides investors with a responsible investment option that adheres to environmental, social, and governance (ESG) principles while seeking to track the Underlying Index's performance.
The correlation aspect of the iShares Paris-Aligned Climate MSCI USA ETF is significant for investors seeking to align their portfolios with climate-conscious investing. This ETF aims to track the MSCI USA Climate Paris Aligned Benchmark Extended Select Index, which prioritizes companies compatible with the objectives of the Paris Agreement by reducing carbon exposure and promoting a transition to a low-carbon economy. The correlation between PABU and companies with sustainable practices, as well as its deviation from the Parent Index, plays a crucial role in assessing its performance as an ESG-focused investment.
The PABU Sector ETF is designed to track the investment results of the MSCI USA Climate Paris Aligned Benchmark Extended Select Index, which follows a decarbonization trajectory and aims to reduce climate-related transition and physical risks while promoting a transition to a low-carbon economy. The index focuses on excluding companies involved in tobacco, controversial or nuclear weapons, civilian firearms, certain climate change-related activities, and those with severe environmental, social, or governance controversies. It strives to meet or exceed the minimum requirements for a Paris-Aligned Benchmark to align with the objectives of the Paris Agreement, emphasizing greenhouse gas reduction and exposure to sectors key to the low carbon transition. As of August 31, 2022, the Underlying Index is significantly represented by securities in the healthcare and technology industries or sectors. Please note that the components of the Underlying Index may change over time as it tracks its sustainability goals.
The PABU (Parent Index) Exposure is centered around the MSCI USA Climate Paris Aligned Benchmark Extended Select Index, designed to align with the objectives of the Paris Agreement. This ETF focuses on U.S. large- and mid-cap stocks while actively excluding companies involved in tobacco, controversial or nuclear weapons, civilian firearms, and certain climate-related activities. The exposure emphasizes a decarbonization trajectory, reducing climate-related risks, and increasing support for the transition to a low-carbon economy. For detailed insights into the ETF''s holdings, overlap, and correlations, consider using the ETF Insider web app, which offers comprehensive data and visualizations for US ETFs.
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