(UPAB) iShares SP500 Paris-Aligned - Ratings and Ratios

The iShares S&P 500 Paris-Aligned Climate UCITS ETF USD Acc USD (UPAB) is an exchange-traded fund designed to align with the Paris Agreements climate goals. It focuses on tracking the Morningstar US Large-Mid NR USD Index, which emphasizes large- and mid-cap U.S. equities. This ETF is listed in Switzerland under the ticker UPAB and trades on the SIX Swiss Exchange.

With an AUM of approximately $983 million, UPAB offers exposure to a portfolio of U.S. large-cap blend equities. The funds strategy involves integrating ESG considerations, particularly focusing on climate alignment. It seeks to reduce exposure to companies with high carbon footprints and increase investments in sectors transitioning to a lower-carbon economy, such as renewable energy and clean technologies.

From a portfolio perspective, UPAB is heavily weighted towards the technology sector, which is a significant driver of innovation in climate solutions. It also holds substantial positions in financials and consumer discretionary sectors. The fund avoids direct investments in fossil fuel extraction and production companies, aligning with the decarbonization objectives of the Paris Agreement.

UPABs expense ratio is competitive, making it an attractive option for investors seeking cost-effective exposure to climate-aligned U.S. equities. The fund is structured as a UCITS-compliant ETF, which is particularly appealing to European investors due to its regulatory framework and transparency. Additionally, UPAB is denominated in USD, offering a straightforward way to gain exposure to U.S. large-cap equities while adhering to climate-conscious investment principles.

For fund managers and investors evaluating UPAB, key considerations include its tracking error relative to the Morningstar US Large-Mid NR USD Index, its liquidity profile, and its carbon footprint reduction targets. The funds performance is closely tied to the broader U.S. equity market, with an added layer of ESG screening to meet its climate objectives.