iShares MSCI ACWI Low Carbon Target ETF (CRBN)

Overview

The iShares MSCI ACWI Low Carbon Target ETF (CRBN) aims to track the investment results of an index composed of global equities and designed to minimize carbon exposure. It provides exposure to companies with lower carbon emissions and fossil fuel reserves compared to the broader global equity market.

Reputation and Reliability

iShares, a brand of BlackRock, is a well-established and reputable issuer of ETFs with a long track record in the market.

Management Expertise

BlackRock possesses significant expertise in managing ETFs, with a large team of professionals dedicated to index tracking and portfolio management.

Goal

To track the investment results of an index composed of global equities and designed to minimize carbon exposure.

Investment Approach and Strategy

Strategy: The ETF aims to track the MSCI ACWI Low Carbon Target Index.

Composition The ETF holds a basket of global stocks, weighted to reduce exposure to high carbon emitters and fossil fuel reserves. Typically invests a large portion of its assets in the securities of its underlying index and in securities that are substantially identical to the securities in its underlying index.

Market Share: CRBN's market share in the low-carbon ETF sector is significant, but exact figures fluctuate and are difficult to pinpoint without proprietary data.

Total Net Assets (AUM): 2970000000

Key Competitors

• SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)
• iShares ESG Aware MSCI USA ETF (ESGU)

Competitive Landscape

The low-carbon ETF industry is becoming increasingly competitive, with more funds offering similar strategies. CRBN benefits from the iShares brand and established AUM but faces competition from ETFs with potentially lower expense ratios or slightly different index methodologies. CRBN's advantage lies in its focus on minimizing both carbon emissions and fossil fuel reserves, while other ESG ETFs may have a broader scope.

Historical Performance: Historical performance data requires real-time updated information and cannot be provided directly, but it is available on financial data providers like Bloomberg, Yahoo Finance and ETF.com.

Benchmark Comparison: Benchmark comparison requires real-time updated information and cannot be provided directly, but it is available on financial data providers like Bloomberg, Yahoo Finance and ETF.com.

Expense Ratio: 0.09

Average Trading Volume

The ETF's average trading volume is reasonably high, indicating good liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, suggesting low transaction costs.

Market Environment Factors

Economic indicators, sector growth prospects (especially in renewable energy), government regulations concerning carbon emissions, and investor sentiment towards ESG investments all impact CRBN.

Growth Trajectory

Growth is driven by increasing investor interest in sustainable investing, corporate commitments to reducing carbon footprints, and potential government incentives for low-carbon technologies. The fund's strategy and holdings have remained largely consistent, reflecting its index-tracking approach.

Competitive Edge

CRBN's competitive edge lies in its established presence as a low-carbon ETF within the well-recognized iShares family. The fund offers a low expense ratio compared to its competitors. This advantage makes it a cost-effective choice for investors seeking to align their portfolios with environmental sustainability goals. The clear index-tracking methodology contributes to investor confidence and predictability.

Volatility

Historical volatility can be found on various financial data providers. The ETF will reflect general market volatility, plus any volatility specific to the sectors and geographies it invests in.

Market Risk

Market risk includes general equity market declines and sector-specific risks related to the performance of companies with low carbon emissions and reduced fossil fuel reserves. There's also the risk that the definition of 'low carbon' changes over time, potentially affecting the index composition.

Ideal Investor Profile

The ideal investor is environmentally conscious, seeking long-term capital appreciation, and comfortable with global equity market exposure. This includes individuals, institutions, and advisors incorporating ESG factors into their investment process.

Market Risk

This ETF is suitable for long-term investors who want exposure to global equities with a lower carbon footprint. It may also be suitable for passive index followers looking for an ESG-focused investment option.

The iShares MSCI ACWI Low Carbon Target ETF (CRBN) offers investors a way to reduce the carbon footprint of their global equity investments by tracking an index that minimizes exposure to high carbon emitters and fossil fuel reserves. The fund benefits from the strong brand of iShares. CRBN presents a valuable tool for investors looking to align their portfolios with environmental sustainability goals, however the historical performance data, benchmark comparison and up-to-date Market Share Comparison will need to be checked before investing. With a relatively low expense ratio, it is a cost-effective option for long-term, environmentally conscious investors.

Data Sources:

• iShares website
• ETF.com
• Bloomberg
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Data is based on available information and may be subject to change. Market share data is estimated based on available information and may not be precise.