FINANCIAL PROFESSIONALS
OUTLOOK & INSIGHTS
BY TOPIC
DOCUMENTS
TAX RESOURCES
ESG Screened
Seek to eliminate exposure to certain controversial business activities that pose risks or do not align with an investor's preferences.
SHOW PRODUCTS
HIDE PRODUCTS
ESG Aware
Balance seeking a similar risk and return to the relevant broad market with seeking a more sustainable outcome.
STOCKS:
SHOW PRODUCTS
HIDE PRODUCTS
ESG Advanced
Prioritize higher-rated ESG companies while extensively screening out controversial activities.
STOCKS:
SHOW PRODUCTS
HIDE PRODUCTS
Incorporating climate risks and opportunities into your portfolio: three approaches
As climate considerations become more important to portfolio construction, investors may want to consider direct or indirect climate approaches to help align their portfolios with the transition to a low carbon economy.
REDUCE
Description
Funds that seek to reduce exposure to heavy carbon emitters; may include broad ESG funds with stringent fossil fuels-related screens.
Use case: broad building blocks
Use these funds as broad building blocks for diversified sustainable portfolios.
PRIORITIZE
Description
Funds that allocate capital based on a company or government’s commitments and actions to transition, such as companies reducing their reliance on fossil fuels and setting science-based targets.
Use case: broad building blocks
Use these funds as broad building blocks for diversified sustainable portfolios.
TARGET
Description
Funds that invest in a specific sustainable activity, such as clean energy, or investments directly tied to projects designed to advance environmental purposes, such as green bonds.
Use case: target exposure
Use these funds to gain targeted exposure to specific sustainable themes or strategies designed to deliver measurable environmental impact.
Build a strong foundation with ESG ETFs
iShares ESG ETFs provide exposure to quality companies that may be better positioned to manage sustainability risks.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
A fund's environmental, social and governance (“ESG”) investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have an ESG focus. A fund's ESG investment strategy may result in the fund investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards. In addition, companies selected by the index provider may not exhibit positive or favorable ESG characteristics.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.
Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.
The BlackRock funds are actively managed and their characteristics will vary.
Actively managed funds do not seek to replicate the performance of a specified index. Actively managed funds may have higher portfolio turnover than index funds.
A fund’s strategy of investing in securities of companies with low carbon exposure limits the type and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not seek to minimize carbon exposure. A fund’s low carbon exposure investment strategy may result in the fund investing in securities or industry sectors that underperform the market.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Barclays, Bloomberg Finance L.P., BlackRock Index Services, LLC, Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), ICE Data Services, LLC, India Index Services & Products Limited, JPMorgan Chase & Co., Japan Exchange Group, MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell or S&P Dow Jones Indices LLC. None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above.
Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Equity REITS Index, FTSE NAREIT All Residential Capped Index or FTSE NAREIT All Mortgage Capped Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index or FTSE EPRA/NAREIT Global REIT Index; all rights vest in FTSE, NAREIT and EPRA.“FTSE®” is a trademark of London Stock Exchange Group companies and is used by FTSE under license.
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