BlackRock’s iShares, begun trading a new Socially Responsible ETF, the iShares MSCI USA ESG Optimized ETF (Nasdaq: ESGU), on Friday, December 02, 2016. Here is a synopsis of the new ETF:
|Symbol: ESGU||Exchange: NASDAQ|
|Name: iShares MSCI USA ESG Optimized ETF||Net Expense Ratio: 0.28%|
The iShares MSCI USA ESG Optimized ETF seeks to track the investment results of the MSCI USA ESG Focus Index.
The MSCI USA ESG Focus Index, which has been developed by MSCI Inc. (Index Provider), is an optimized equity index designed to reflect the equity performance of U.S. companies that have positive environmental, social and governance (ESG) characteristics (as determined by the Index Provider), while exhibiting risk and return characteristics similar to those of the MSCI USA Index (Parent Index).
The Index Provider begins with the Parent Index, excludes securities of companies involved in the business of tobacco and controversial weapons companies, as well as securities of companies involved in very severe business controversies (as determined by the Index Provider), and then follows a quantitative process that is designed to determine optimal weights for securities to maximize exposure to securities of companies with higher ESG ratings, subject to maintaining risk and return characteristics similar to the Parent Index.
For each industry, the Index Provider identifies key ESG issues that can lead to unexpected costs for companies in the medium- to long-term. The Index Provider then calculates the size of each company’s exposure to each key issue based on the company’s business segment and geographic risk and analyzes the extent to which companies have developed robust strategies and programs to manage ESG risks and opportunities. Using a sector-specific key issue weighting model, companies are rated and ranked in comparison to their industry peers. The Underlying Index may include large- or mid- capitalization companies. Components of the Underlying Index primarily include financials, healthcare and information technology companies.
Fund Top Holdings (12/08/16):
|XOM||EXXON MOBIL CORP||1.85%|
|JNJ||JOHNSON & JOHNSON||1.47%|
|JPM||JPMORGAN CHASE & CO||1.42%|
|AMZN||AMAZON COM INC||1.41%|
|FB||FACEBOOK CLASS A INC||1.34%|
|GOOGL||ALPHABET INC CLASS A||1.26%|
|PG||PROCTER & GAMBLE||1.26%|
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