(PABU) iShares Paris-Aligned - Ratings and Ratios

The iShares Paris-Aligned Climate MSCI USA ETF (PABU) is an exchange-traded fund that tracks a climate-aware index, focusing on large-cap growth stocks in the US market. As a Paris-aligned fund, it aims to support the transition to a low-carbon economy by investing in companies that are well-positioned to benefit from climate change mitigation efforts.

Key Performance Indicators (KPIs) for PABU include its tracking error relative to its benchmark, the MSCI USA Climate Paris Aligned Index, as well as its carbon footprint and climate-related metrics, such as the weighted average carbon intensity (WACI) of its holdings. The funds investment strategy is designed to align with the goals of the Paris Agreement, which aims to limit global warming to well below 2°C and pursue efforts to limit it to 1.5°C above pre-industrial levels.

The ETFs underlying index is constructed using a rules-based methodology that considers various climate-related factors, including companies carbon emissions, green revenues, and climate-related risks and opportunities. The funds portfolio is likely to be tilted towards companies in sectors such as technology, healthcare, and renewable energy, which are seen as key beneficiaries of the low-carbon transition.

Key economic drivers for PABU include the ongoing shift towards a low-carbon economy, driven by government policies, technological innovation, and changing investor preferences. The funds performance is likely to be influenced by factors such as the pace of climate change mitigation efforts, the growth of renewable energy, and the adoption of climate-friendly technologies. The US macroeconomic environment, including interest rates, GDP growth, and corporate earnings, will also impact the funds performance.

With an AUM of $2.23 billion, PABU has achieved a significant scale, which can help to reduce costs and improve liquidity for investors. As a large-cap growth ETF, PABU is likely to appeal to investors seeking exposure to the US equity market with a climate-aware twist.