ESG Screened ETFs

With the iShares ESG Screened range, clients looking to avoid controversial business areas while still maintaining broad market exposures now have a simple, accessible, low-cost solution. The iShares Environmental, Social and Governance Screened1 range screens out seven contentious areas and is offered at the same price as traditional equivalent exposures.

 


 

Capital at risk. This information should not be relied upon as investment advice, or a recommendation regarding any products, strategies. The environmental, social and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.

Take a Screened approach
to sustainability

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Low cost
iShares ESG Screened ETFs are offered at the same price as traditional core building blocks.
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Minimal tracking error
Close proximity to parent indices make the suite a potential substitute for standard benchmarks2.
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Screen out business area
The seven screens can make a significant difference to a fund’s carbon footprint reduction and exposure to controversial business areas.

Moving from traditional
indices to screened

Click the circle to view more.

MSCI Parent Index

MSCI ESG Screened Focus Index

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Screens

Civilian Firearms, Controversial Weapons, Nuclear Weapons, Thermal Coal, Oil Sands, Tobacco, UN Global Compact Violators



Sources: MSCI, BlackRock as at 30 April 2020

Rules behind the ESG Screening

Screening metrics can help investors to track indices which exclude companies meeting any of the following descriptions. Click to learn more about the business involvement screens in the iShares screened range.

    • Controversial weapons: all companies with any ties to controversial weapons which includes: cluster munitions, landmines, depleted uranium weapons, biological/chemical weapons, blinding lasers, non-detectable fragments and incendiary weapons.
    • Nuclear weapons: all companies that manufacture nuclear warheads, nuclear missile systems, exclusive and dual use components, exclusive and dual use delivery platforms and provide auxiliary services related to nuclear weapons.
    • Tobacco: all companies classified as a “Producer” and all others deriving 5% or more aggregate revenue from the production, distribution, retail and supply of tobacco-related products.
    • Civilian firearms: all companies classified as a “Producer” of firearms and small arms ammunitions for civilian markets and all others deriving 5% or more revenue from the distribution (wholesale or retail) of firearms or small arms ammunition intended for civilian use.
    • UN Global Compact Violators: all companies violating the United Nations Global Compact principles.
    • Thermal Coal: exclude all companies deriving 5% or more revenue from the mining of thermal coal and its sale to external parties, and those delivering 5% or more revenue from thermal coal based power generation.
    • Oil sands: companies deriving 5% or more revenue from oil sands extraction, which own oil sands reserves and disclose evidence of deriving revenue from oil sands extraction.

    Sources: MSCI as at 30 April 2020.

Explore the iShares 
ESG Screened ETFs 

ExposuresTickerNameTotal expense ratio
Europe SAEU iShares MSCI Europe ESG Screened UCITS ETF 12bps
Global SAWD iShares MSCI World ESG Screened UCITS ETF 20bps
USA SASU iShares MSCI USA ESG Screened UCITS ETF 7bps
EMU SAUM iShares  MSCI EMU ESG Screened UCITS ETF 12bps
Japan SAJP iShares MSCI  Japan ESG Screened UCITS ETF 20bps
Emerging markets SAEM iShares MSCI EM IMI ESG Screened UCITS ETF 18bps
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1 The indices are market-cap weighted and do not utilise MSCI ESG or Controversy Scores.
2 Source: MSCI, 31.05.2012 to 30.09.2019. Tracking error across exposures range between 49-62bps, apart from Europe which is at 85bps.

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.