Enhance your core with ESG

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. Unless otherwise stated, all information is sourced from MSCI and is correct as at 31 December 2018.

Broad market ESG ETFs
for a sustainable core

  • Access to traditional core exposures with a stronger focus on the companies with the strongest environmental, social and governance (ESG) factors characteristics.
  • Our ESG Enhanced range of ETFs offer the same screens as our ESG Screened range and also include a screen for companies with severe controversies.
  • Targeting a limited tracking error to traditional benchmarks, iShares MSCI ESG Enhanced ETFs could offer a good substitute in model portfolios.
  • Each fund targets a 30% carbon reduction compared to its traditional exposure counterpart.

Why take an enhanced approach?

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Enhanced ESG score

Reweights securities to
maximise ESG score

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Target tracking error

Designed for your core:
Developed Markets: 50bps
Emerging Markets: 100bps

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Carbon & GHG intensity reduction

30% carbon & greenhouse
gas (GHG) intensity (sales)
reduction1

1 Weighted Average Carbon Emissions Intensity measured by metric tons of carbon emissions emitted per million dollars of revenue.

How does the optimisation process work?

The MSCI ESG Enhanced Focus Index range is designed to maximize exposure to companies with positive ESG characteristics while reducing a fund’s carbon intensity and maintaining a similar risk and return profile to traditional broad benchmarks.

Explore the steps below to understand the methodology of how the indices are constructed.

Click the circles to view more

MSCI Parent Index

MSCI Enhanced ESG Focus Index

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Screens

Just like the iShares range of ESG Screened ETFs, the ESG Enhanced Focus index range excludes companies which have high potential for negative social and/or environmental impact:

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Constraints

The optimization process aims to maximize exposure to positive ESG scores and simultaneously reduce carbon emissions intensity and potential emissions using the following constrains:

Time to get started

iShares MSCI ESG Enhanced ETFs

Build a sustainable core across key markets and asset classes with iShares MSCI ESG Enhanced ETFs.

iShares MSCI Europe ESG Enhanced UCITS ETF
iShares MSCI EMU ESG Enhanced UCITS ETF
iShares MSCI Japan ESG Enhanced UCITS ETF
iShares MSCI World ESG Enhanced UCITS ETF
iShares MSCI USA ESG Enhanced UCITS ETF

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.