iShares MSCI KLD 400 Social ETF (DSI)

Overview

The iShares MSCI KLD 400 Social ETF (DSI) seeks 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 companies and uses a socially responsible investing strategy.

Reputation and Reliability

BlackRock is one of the largest and most reputable asset managers globally, known for its wide range of ETF offerings and strong track record.

Management Expertise

BlackRock has extensive expertise in managing ETFs, with a large team of experienced portfolio managers and analysts.

Goal

To track the investment results of an index composed of U.S. companies that have positive environmental, social and governance (ESG) characteristics.

Investment Approach and Strategy

Strategy: Tracks the MSCI KLD 400 Social Index, a market-cap-weighted index designed to measure the performance of U.S. companies with high ESG ratings.

Composition Primarily holds stocks of large and mid-cap U.S. companies meeting specific ESG criteria. Focuses on sector diversification aligned with the broader market.

Market Share: DSI holds a moderate market share within the socially responsible investing ETF segment.

Total Net Assets (AUM): 2090000000

Key Competitors

• CRBN
• ESGV
• SUSL

Competitive Landscape

The socially responsible investing ETF market is competitive, with several ETFs offering similar ESG-focused strategies. DSI's strength lies in BlackRock's established brand and relatively low expense ratio compared to some peers. However, competitors may offer different ESG screening methodologies or focus on specific ESG themes which is a weakness.

Historical Performance: Historical performance data not readily available within this request's framework, and requires specific performance data queries.

Benchmark Comparison: Benchmark comparison data is not available for this request's framework, and requires specific performance data queries.

Expense Ratio: 0.09

Average Trading Volume

DSI's average trading volume is moderate, which generally supports ease of entry and exit for investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting adequate liquidity and lower transaction costs.

Market Environment Factors

Growing investor interest in ESG investing, regulatory trends promoting sustainable finance, and increasing awareness of social and environmental issues drive demand for DSI. Broader market conditions also influence performance.

Growth Trajectory

DSI's growth is linked to the expansion of ESG investing and its ability to attract investors seeking socially responsible options. Its holdings are regularly updated to maintain its ESG focus.

Competitive Edge

DSI benefits from BlackRock's strong brand recognition and distribution network, providing it with a significant advantage in attracting assets. Its low expense ratio compared to some competitors makes it an attractive option for cost-conscious investors. Furthermore, its long track record in the socially responsible investing space helps solidify its position. The ETF's broad diversification across sectors reduces the risk of overexposure to any single industry or company. DSI provides investors with an accessible way to integrate ESG considerations into their investment portfolio.

Volatility

Historical volatility is moderate, similar to broad market indices with a large cap focus.

Market Risk

DSI is subject to general market risk, as its performance is tied to the overall performance of the U.S. stock market. It is also subject to ESG risk, where changes in ESG ratings can influence investment decisions.

Ideal Investor Profile

Ideal for investors who prioritize ESG factors and seek to align their investments with their values. Suitable for those seeking diversified exposure to U.S. equities.

Market Risk

Suitable for long-term investors, particularly those with a focus on socially responsible investing. Also beneficial for passive index followers.

The iShares MSCI KLD 400 Social ETF (DSI) offers investors a way to invest in U.S. companies with positive ESG characteristics through a diversified, market-cap-weighted index. Backed by BlackRock's reputable management and carrying a relatively low expense ratio, DSI is an attractive option for socially conscious investors. It tracks the MSCI KLD 400 Social Index and is exposed to general market risk and ESG rating changes. DSI is best suited for long-term, passive investors seeking to integrate their values into their portfolio. It is a solid choice for those seeking broad exposure to socially responsible companies, allowing investors to allocate capital towards companies that meet certain ESG criteria.

Data Sources:

• iShares Website
• MSCI Index Information
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Investment decisions should be made based on individual circumstances and consultation with a financial advisor. Market conditions are subject to change, and past performance is not indicative of future results.