(EDM6) iShares MSCI Europe ESG - Ratings and Ratios

The iShares MSCI Europe ESG Enhanced UCITS ETF EUR Acc (SW: EDM6) is a Swiss-domiciled ETF designed to provide exposure to large-cap European equities with an enhanced ESG focus. It tracks the Morningstar DM Eur TME NR EUR Index, which includes companies from developed European markets, excluding small-caps. The fund incorporates ESG considerations, overweighting companies with higher ESG ratings and underweighting those with lower ratings, while maintaining a close tracking error to its parent index.

With an AUM of 1.71 billion EUR, this ETF offers a diversified portfolio of European large-cap stocks, blending core equity exposure with sustainability. The fund is structured as a UCITS-compliant ETF, ensuring transparency, liquidity, and regulatory compliance for European investors. It is denominated in EUR and listed on the Swiss exchange, making it accessible to a broad range of investors across Europe.

Investors should note that while the fund does not provide explicit P/E, P/B, or P/S metrics, its ESG-enhanced strategy aligns with the growing demand for sustainable investing. The Morningstar index underlying the ETF screens for ESG risks and opportunities, potentially offering a more resilient portfolio during market downturns. The funds expense ratio and tracking error are critical considerations for performance evaluation.

The ETF’s geographic exposure spans major European markets, including the UK, France, Germany, and Switzerland, with sector allocations mirroring the broader European large-cap universe. This fund is suitable for investors seeking a balance between core European equity exposure and ESG principles, though they should evaluate its performance in relation to its non-ESG counterparts to assess any potential trade-offs in returns.