PABU
iShares Trust iShares Paris-Aligned Climate Optimized MSCI USA ETF
📎 Investment Objective
The iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. companies that have been selected and weighted to align with the Paris Agreement's goal of limiting global warming to 1.5°C above pre-industrial levels.
Overview
ETF tracking iShares Trust iShares Paris-Aligned Climate Optimized MSCI USA ETF
Performance
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Investment Summary
📎 Investment Objective
The iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. companies that have been selected and weighted to align with the Paris Agreement's goal of limiting global warming to 1.5°C above pre-industrial levels.
🎯 Investment Strategy
The fund seeks to achieve its objective by investing in a portfolio of U.S. equities that have been selected and weighted to reduce the portfolio's carbon footprint and greenhouse gas emissions intensity relative to the broader U.S. equity market. The fund's index methodology aims to optimize the portfolio for climate risk while maintaining broad market exposure.
✨ Key Features
- Targets U.S. large- and mid-cap companies aligned with the Paris Agreement climate goals
- Utilizes an optimization process to reduce the portfolio's carbon footprint and emissions intensity
- Broad market exposure with a climate-focused tilt
- Expense ratio of 0.00%
⚠️ Primary Risks
- Concentration risk as the fund is focused on a specific subset of the U.S. equity market
- Potential for underperformance relative to the broader U.S. equity market if climate-focused companies underperform
- Reliance on the index provider's methodology for selecting and weighting securities
- Liquidity risk due to the fund's relatively small asset base
👤 Best For
This ETF may be suitable for investors seeking U.S. equity exposure with a focus on climate change mitigation and alignment with the Paris Agreement goals. It may be of particular interest to investors with a long-term investment horizon and a preference for sustainable investing strategies.