iShares Energy Transition Materials ETF (XETM)

Overview

The iShares S&P/TSX Energy Transition Materials Index ETF is a pioneering exchange-traded fund (ETF) that focuses on investments in the public equity markets of the United States, targeting companies within the materials sectors that are pivotal for the energy transition. Managed by BlackRock Asset Management Canada Limited, with additional co-management by BlackRock Institutional Trust Company, N.A., this ETF represents a significant financial instrument designed for investors looking to contribute to and benefit from the global shift towards sustainable energy resources. The fund aims to mirror the performance of the S&P/TSX Global Base Metals Index through a full replication strategy, encompassing a diverse range of market capitalizations and focusing on both growth and value stocks. Established on September 6, 2023, and based in Canada, the iShares S&P/TSX Energy Transition Materials Index ETF marks an accessible route for investors to engage with the critical sector of energy transition materials.

Products and Services

• Public Equity Market Investments:

  This service encompasses the ETF's primary activity of investing in the public equity markets of the United States. It reflects the fund's strategy to allocate assets towards companies within the materials sector, an essential area for advancing the energy transition necessary for a sustainable future.

• Direct and Indirect Stock Investments:

  Investments are made both directly in stocks and indirectly through other funds, ensuring a diversified portfolio that captures a broad spectrum of opportunities within the energy transition materials sector. This approach enables the ETF to be flexible and responsive to market changes and sector developments.

• Growth and Value Stock Investments:

  The fund seeks a balanced investment approach by incorporating both growth and value stocks of companies across diversified market capitalizations. This strategic choice facilitates a robust investment methodology that aims for long-term capital growth while managing risks associated with market volatility and sector specificity.

• Performance Tracking of S&P/TSX Global Base Metals Index:

  Targeting to closely track the performance of the S&P/TSX Global Base Metals Index, the ETF employs a full replication technique. This objective underpins the fund's investment strategy to focus on companies involved in base metals and other materials critical for energy transition, reflecting the increasing demand for sustainable and renewable energy sources.