iShares ESG Advanced MSCI EM ETF (EMXF)

Overview

The iShares ESG Advanced MSCI EM ETF (EMCR) aims to provide exposure to emerging market equities while adhering to specific environmental, social, and governance (ESG) criteria. It targets companies with strong ESG profiles and excludes those with significant involvement in controversial activities.

Reputation and Reliability

iShares is a well-established and reputable ETF issuer, known for its extensive range of investment products and strong track record.

Management Expertise

BlackRock, the parent company of iShares, has significant expertise in asset management and ESG investing, providing a strong foundation for managing the ETF.

Goal

To track the investment results of an index composed of emerging market equities with enhanced environmental, social and governance (ESG) characteristics.

Investment Approach and Strategy

Strategy: The ETF seeks to track the MSCI EM Extended ESG Focus Index. This index is designed to represent the performance of companies with high ESG ratings within the emerging markets universe.

Composition The ETF primarily holds stocks of companies located in emerging market countries, diversified across various sectors. The specific holdings are determined by the index methodology, which prioritizes ESG factors.

Market Share: Data unavailable for direct market share of this specific ESG ETF.

Total Net Assets (AUM): 196800000

Key Competitors

• VWO
• IEMG
• SPEM

Competitive Landscape

The emerging markets ETF landscape is dominated by broad market ETFs like VWO and IEMG. EMCR, being an ESG-focused ETF, has a smaller market share but appeals to investors seeking sustainable investments. Its advantage lies in its ESG screening process, while its disadvantage is potentially higher tracking error compared to broad market ETFs due to the ESG constraints.

Historical Performance: Historical performance data unavailable in structured numerical array. Refer to financial data sources for performance figures.

Benchmark Comparison: Benchmark comparison data unavailable in structured numerical array. Compare ETF performance against the MSCI EM Index and MSCI EM Extended ESG Focus Index.

Expense Ratio: 0.0018

Average Trading Volume

The average trading volume reflects moderate liquidity, enabling investors to buy and sell shares efficiently.

Bid-Ask Spread

The typical bid-ask spread provides insight into the cost of trading the ETF, which can vary based on market conditions.

Market Environment Factors

Economic growth in emerging markets, trade policies, interest rate changes, and geopolitical events influence the ETF's performance. Demand for ESG investments also plays a crucial role.

Growth Trajectory

The ETF's growth depends on the increasing adoption of ESG investing principles and the performance of the emerging markets equity markets. Changes to the underlying index and the inclusion/exclusion of specific holdings can affect its performance.

Competitive Edge

EMCR's competitive edge lies in its ESG focus within the emerging markets space, which attracts socially responsible investors. Its affiliation with iShares provides credibility and access to a vast distribution network. The rigorous ESG screening process differentiates it from standard emerging market ETFs. The focus on companies with higher ESG ratings potentially reduces exposure to environmental and social risks, and helps in the long term wealth creation.

Volatility

The ETF's volatility is comparable to other emerging market equity ETFs, reflecting the inherent risks of investing in emerging markets. Emerging markets can fluctuate more widely than developed markets.

Market Risk

The ETF is subject to market risk, currency risk, and political risk associated with investing in emerging markets. Changes in ESG ratings of constituent companies also pose risk.

Ideal Investor Profile

The ideal investor is one who seeks long-term growth in emerging markets but also prioritizes ESG factors in their investment decisions.

Market Risk

This ETF is suitable for long-term investors who are comfortable with the risks associated with emerging market equities and are seeking to align their investments with ESG principles.

The iShares ESG Advanced MSCI EM ETF offers exposure to emerging markets with an enhanced ESG focus. Its competitive edge stems from its commitment to socially responsible investing, backed by the strong reputation of iShares. The ETF carries typical emerging market risks and is suitable for investors seeking to combine growth potential with ESG considerations. While smaller compared to broad-market emerging market ETFs, its targeted approach caters to a growing segment of investors seeking sustainable investments.

Data Sources:

• iShares website
• Morningstar
• ETF.com

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.