(PABU) iShares Paris-Aligned - Ratings and Ratios

The iShares Paris-Aligned Climate MSCI USA ETF (NASDAQ: PABU) is designed to align with the goals of the Paris Agreement by targeting a decarbonization trajectory. Its underlying index focuses on U.S. large- and mid-capitalization stocks, selecting and weighting them to reduce greenhouse gas emissions intensity. This approach aims to achieve net-zero emissions by 2050, making it a potential choice for investors seeking climate-conscious exposure to U.S. equities.

The fund typically invests at least 90% of its assets in the securities of its underlying index. This means it closely tracks the performance of the index, which is constructed to meet the Paris Agreements climate objectives. The remaining 10% allows for efficient portfolio management and tracking error minimization. It’s important to note that the fund is non-diversified, meaning it can concentrate its holdings in a smaller number of securities compared to diversified funds.

As a large growth ETF, PABU provides exposure to U.S. companies that are leaders in their industries, with a tilt toward firms that are better positioned to benefit from the transition to a low-carbon economy. The fund’s portfolio is rebalanced periodically to ensure continued alignment with its climate goals, which includes reducing the carbon footprint of its holdings over time. For investors and fund managers, this ETF offers a way to integrate climate considerations into portfolios while maintaining exposure to the broader U.S. equity market.

With an AUM of $1,968.63 million, PABU is a sizeable fund, indicating a certain level of liquidity and market presence. However, as with any ETF, investors should evaluate its expense ratio, tracking error, and historical performance relative to its peers. The lack of reported P/E, P/B, and P/S ratios is not unusual for ETFs, as these metrics are less relevant for funds compared to individual stocks.