(EDM2) iShares MSCI EM ESG - Ratings and Ratios

The iShares MSCI EM ESG Enhanced UCITS ETF USD Acc (SW: EDM2) is designed to offer investors exposure to emerging markets with a focus on environmental, social, and governance (ESG) factors. The fund tracks the MSCI EM ESG Enhanced Focus Index, which selects and weights companies based on their ESG performance relative to their sector peers. This approach aims to enhance ESG outcomes without significantly deviating from the broader emerging markets equity universe.

As an ETF, it provides transparency, liquidity, and cost-efficiency, making it accessible to a wide range of investors. The fund is domiciled in Ireland, which offers a stable regulatory environment, and is managed by BlackRock, one of the largest and most experienced asset managers globally. With an AUM of $4.624 billion, the fund benefits from scale, which can help keep costs low and improve liquidity for investors.

The funds index, the MSCI EM ESG Enhanced Focus Index, employs a weighted approach to increase exposure to companies with higher ESG ratings while maintaining a diversified portfolio. This methodology balances ESG considerations with the need for broad market representation, ensuring that investors are not overly concentrated in a small subset of companies. By integrating ESG factors, the fund aims to align with the growing demand for sustainable investment solutions.

For investors and fund managers, this ETF offers a way to gain exposure to emerging markets while incorporating ESG criteria. Emerging markets are a key driver of global growth, and the integration of ESG factors can help mitigate risks associated with poor governance, environmental degradation, and social inequality. The funds structure and focus make it a relevant option for portfolios seeking to balance returns with sustainable practices.