iShares ESG Screened S&P Mid-Cap ETF (XJH)

Overview

The fund focuses on mirroring the investment outcomes of the S&P MidCap 400 Sustainability Screened Index, targeting the mid-cap sector of the U.S. equity market. This specific index is tailored to exclude companies engaged in activities deemed controversial or involved in controversies according to the criteria set by S&P Dow Jones Indices LLC. Employing a representative sampling indexing strategy, the fund is managed by BFA and is classified as non-diversified, indicating a focus on selected rather than broad market investments. This strategic approach underlines the fund's commitment to sustainable and responsible investing by omitting companies that do not meet certain ethical standards.

Products and Services

The primary offering of this fund is notably intertwined with a sustainable investing framework, catering to investors who are not only interested in financial returns but also in contributing positively to societal standards and environmental stewardship. Detailed below are the core aspects of the fund's product and service offers:

• Sustainability Screened Index Investment: The fund invests in companies listed in the S&P MidCap 400 Index that have passed a sustainability screening. This screening excludes companies associated with controversial business activities or controversies, aligning investment choices with ethical considerations.
• Representative Sampling Indexing Strategy: Unlike full replication strategies that aim to invest in all index components, the fund utilizes a representative sampling approach. This means it invests in a subset of securities that collectively resemble the full index in terms of key financial characteristics, performance, and risk profile. This strategy allows for more flexibility and potentially lower costs in managing the fund.