iShares ESG Aware MSCI USA ETF (ESGU), one of the largest ESG ETF in the world with $22.3 billions in assets continue to deliver investors’ financial goals while holding U.S. companies that have positive environmental, social and governance characteristics. Year-to-date, ESGU has posted 18% of positive returns and amassed around $6.1 bn of flows.
The fund was launched on December 1st 2016 and got an average ESG rating of “A” and a MSCI ESG Quality Score of 6.7/10 as of September 7. The fund’s good performance is attributed to the high exposure (~30%) to information technology shares, which witness larger growth on average. Its top holdings include Apple Inc. (5.92%), Microsoft (5.5%) and Amazon (3.76%). Investors who bought $10,000 of ESGU shares on inception would have turned their investment into $22,929 by September 23rd.
With more than $115bn of flows in 2021 alone, ESG investing is gaining traction and the trend will likely continue with rising social and environmental awareness among all stakeholders.
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