iShares ESG Aware MSCI EM ETF (EMXF)

Overview

The index represents a specialized investment focus within the larger context of the emerging markets. It is constructed to provide investors with exposure to large- and mid-cap companies in emerging markets that have been identified as having strong Environmental, Social, and Governance (ESG) ratings. This investment approach is designed for those who seek to align their investments with their values regarding environmental stewardship, social responsibility, and governance practices. By excluding companies with significant fossil fuel exposure, the index targets a sustainability-conscious demographic. The underlying methodology ensures that the index is weighted according to free float-adjusted market capitalization, allowing for a market-oriented approach while upholding ESG principles.

Products and Services

• Emerging Markets ESG Equity Fund

  This fund is the primary vehicle for investors looking to gain exposure to the index. It is designed to track the equity performance of companies in emerging markets that not only demonstrate solid financial potential but also adhere to high standards of environmental, social, and governance criteria. Investing at least 90% of its assets in the securities that comprise the index or in investments that closely mirror the economic characteristics of the index's components, the fund offers a focused investment strategy. This approach provides investors with a way to participate in the growth potential of emerging markets while supporting sustainable business practices.

• Non-diversified Fund Structure

  The fund's non-diversified status points to its strategy of not spreading its investments across a wide array of sectors. Instead, it chooses to concentrate its assets in a limited number of companies that meet the stringent ESG and fossil-free criteria set forth by the index. This approach can lead to higher volatility and risk, as the fund's performance is more closely tied to the fortunes of fewer companies. However, it also provides the possibility of higher returns for investors who are comfortable with these risks and are committed to investing in a way that reflects their ESG values.