BlackRock Fund Advisors (BFA) is the issuer of the XVV ETF, which seeks to track the S&P 500 Sustainability Screened Index. Established to measure the performance of large-cap U.S. equities while excluding companies involved in controversial activities, the XVV ETF reflects BFA's commitment to sustainable investing principles. Utilizing a representative sampling indexing strategy, BFA aims to provide investors with exposure to companies aligning with environmental, social, and governance (ESG) considerations while managing risk and tracking the underlying index efficiently.
Despite its focus on sustainability-screened investing, the XVV ETF still offers potential dividend benefits for investors. The dividend distribution of XVV reflects the performance of the S&P 500 Sustainability Screened Index, which measures the large-capitalization sector of the U.S. equity market while excluding companies involved in controversial business activities. Typically distributed on a quarterly basis, dividends are influenced by constituent companies' dividend policies and performances, providing investors with an opportunity for both sustainable investing and potential income generation.
The XVV Fund seeks to replicate the performance of the MSCI EM Extended ESG Leaders 5% Issuer Capped Index, developed by MSCI Inc. This index comprises emerging market companies exhibiting favorable environmental, social, and governance (ESG) characteristics as evaluated by MSCI ESG Research LLC.To be included in the index, companies must meet specific ESG criteria and avoid involvement in industries such as alcohol, tobacco, gambling, nuclear power and weapons, thermal coal, unconventional oil and gas businesses, conventional and controversial weapons, and civilian firearms. Additionally, companies facing severe business controversies are excluded.MSCI ESG Research rates companies' ESG characteristics on a scale from CCC to AAA and assesses controversies on a scale of zero to ten. Only companies with an ESG rating of BB or higher are eligible for inclusion.The index composition is determined by factors such as ESG ratings, market capitalization, and industry classification. Constituents are weighted by free float-adjusted market capitalization, with individual issuers limited to 5% of index weight.The XVV Fund employs a representative sampling indexing strategy, investing in securities similar to those in the underlying index. It generally invests at least 90% of its assets in index component securities and may invest up to 10% in certain derivatives, cash equivalents, and securities not included in the index.The fund may lend securities up to one-third of its total assets and will concentrate investments in line with the industry concentration of the underlying index.
Understanding the correlation of the iShares ESG Screened S&P 500 ETF (XVV) is crucial for investors seeking exposure to the U.S. large-capitalization equity market while adhering to sustainability criteria. As XVV tracks the S&P 500 Sustainability Screened Index, its correlation with the broader market is expected to be strong, providing insights into market trends within the sustainable investing landscape. Investors can utilize XVV's correlation data alongside other asset classes to optimize portfolio diversification and risk management strategies.
The XVV ETF focuses on tracking the S&P 500 Sustainability Screened Index, excluding companies involved in controversial business activities such as tobacco, controversial weapons, and certain fossil fuel-related activities. This ETF offers investors exposure to large-capitalization companies in the U.S. equity market while aligning with sustainability principles. By utilizing data and research from Trucost, Sustainalytics, and SAM ESG Research, XVV excludes companies that do not meet specific environmental, social, and governance (ESG) criteria, enhancing its appeal to socially conscious investors. Additionally, XVV employs a representative sampling indexing strategy to achieve an investment profile similar to its underlying index, aiming for lower costs and better after-tax performance while reducing some risks associated with active management.
The exposure characteristic of the iShares ESG Aware S&P 500 ETF (XVV) is distinctive, focusing on the large-cap sector of the U.S. equity market while adhering to sustainability criteria. XVV tracks the S&P 500 Sustainability Screened Index, which excludes companies involved in controversial business activities and controversies, as determined by S&P Dow Jones Indices LLC. By employing data and research analysis from Trucost, Sustainalytics, and SAM ESG Research, XVV ensures that its exposure aligns with environmental, social, and governance (ESG) principles. Investors seeking to engage with large-cap U.S. equities through a socially responsible lens can leverage XVV's exposure to access companies demonstrating strong ESG performance while excluding those engaged in contentious practices.
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