ESGU

📎 Investment Objective

The iShares ESG Aware MSCI USA ETF (ESGU) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. companies that have been selected and weighted for positive environmental, social and governance (ESG) characteristics.

✨ Key Features

• Focuses on U.S. large- and mid-cap companies with positive ESG profiles
• Seeks to track the MSCI USA Extended ESG Focus Index, which is designed to maximize exposure to positive ESG characteristics
• Broad diversification across sectors, with no single holding exceeding 5% of the portfolio
• Relatively low expense ratio compared to many other ESG-focused ETFs

⚠️ Primary Risks

• Market risk: The value of the ETF's holdings may decline due to general market and economic conditions
• ESG investment risk: The ETF's ESG screening process may exclude certain companies or industries, which could underperform the broader market
• Concentration risk: The ETF may be more heavily weighted in certain sectors, which could increase volatility
• Tracking error risk: The ETF may not perfectly track its underlying index

👤 Best For

The iShares ESG Aware MSCI USA ETF may be suitable for long-term investors seeking broad exposure to U.S. equities with a focus on companies demonstrating positive environmental, social, and governance practices. It may be particularly appealing to investors who want to incorporate ESG considerations into their investment portfolio without significantly deviating from the performance of the broader U.S. stock market.