iShares MSCI KLD 400 Social ETF (DSI)

Overview

The iShares MSCI KLD 400 Social ETF (DSI) aims to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance (ESG) characteristics, as identified by the index provider. It focuses on large- and mid-cap stocks and offers exposure to socially responsible investing.

Reputation and Reliability

iShares is a well-known and reputable ETF issuer, part of BlackRock, the world's largest asset manager, with a long track record of providing reliable and diverse investment products.

Management Expertise

BlackRock possesses substantial management expertise with experienced portfolio managers and analysts dedicated to ETF management and research.

Goal

The fund seeks to track the investment results of the MSCI KLD 400 Social Index, which is designed to represent U.S. companies with positive ESG characteristics.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index (MSCI KLD 400 Social Index) through a representative sampling strategy, selecting holdings that mirror the overall characteristics of the index.

Composition The ETF holds a diversified portfolio of stocks, primarily focused on large and mid-cap U.S. companies that meet certain ESG criteria. The portfolio is heavily weighted towards technology, healthcare, and financials.

Market Share: DSI holds a significant portion of the market for socially responsible ETFs.

Total Net Assets (AUM): 1500000000

Key Competitors

• Xtrackers S&P 500 ESG ETF (SNPE)
• VettaFi ESG Ratings ETF (ESGB)
• SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)

Competitive Landscape

The socially responsible ETF market is becoming increasingly competitive. DSI has the advantage of being an early mover with a well-established track record and brand recognition. However, newer ETFs often have lower expense ratios and slightly different ESG screening methodologies, thus providing more options for investors. SPYX offers a filter that excludes fossil fuel companies, and SNPE tracks the S&P 500 with ESG criteria. Each ETF is striving to cater to specific ESG investor needs.

Historical Performance: Historical performance data unavailable.

Benchmark Comparison: Historical performance data unavailable.

Expense Ratio: 0.25

Average Trading Volume

DSI exhibits moderate liquidity with a consistent average daily trading volume, facilitating easy buying and selling.

Bid-Ask Spread

The typical bid-ask spread for DSI is reasonably tight, indicating relatively low transaction costs.

Market Environment Factors

Economic growth, investor sentiment towards ESG investing, and regulatory changes related to sustainability can impact DSI's performance. Increasing awareness of ESG factors boosts investor demand for funds like DSI.

Growth Trajectory

The fund's growth trajectory is linked to the increasing adoption of ESG investing strategies. There have been some adjustments to the holdings reflecting the criteria changes within the KLD 400 Social Index.

Competitive Edge

DSI benefits from being one of the early socially responsible ETFs, giving it a strong brand reputation and considerable AUM. Its broad ESG screening and established track record set it apart. iShares' scale and distribution network provide advantages in attracting investors. The index methodology, while relatively broad, offers a diversified portfolio focused on ESG leaders.

Volatility

DSI's volatility generally mirrors the broader market, particularly as it is comprised of large- and mid-cap U.S. equities. Performance is subject to market fluctuations.

Market Risk

Specific risks include underperformance relative to broader market indexes if ESG factors negatively impact stock selection. Changes in ESG standards and investor sentiment can also affect demand.

Ideal Investor Profile

DSI is suitable for investors who are seeking long-term capital appreciation while aligning their investments with their social and environmental values. It is appropriate for those who want exposure to ESG-focused companies without the need for individual stock selection.

Market Risk

DSI is best suited for long-term investors or passive index followers who want to incorporate ESG considerations into their portfolios.

The iShares MSCI KLD 400 Social ETF (DSI) offers a convenient way to invest in companies with positive ESG characteristics. Its performance mirrors that of the broader market while upholding certain social and environmental values. DSI offers investors a way to align their investments with their values. It is generally suitable for long-term investors with passive investing styles and ESG considerations. The ETF is from a reputable issuer, iShares, a division of Blackrock.

Data Sources:

• iShares Official Website
• MSCI Index Fact Sheet
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on your own research and risk tolerance.