(36B4) iShares MSCI Japan SRI - Ratings and Ratios

The iShares MSCI Japan SRI UCITS ETF USD (Dist), listed on XETRA under the ticker 36B4, is an exchange-traded fund designed to provide exposure to Japanese large-cap equities while incorporating environmental, social, and governance (ESG) considerations. The fund tracks the Morningstar Japan TME NR JPY Index, which focuses on companies that meet specific ESG criteria while maintaining a diversified portfolio of Japanese equities.

With an assets under management (AUM) of approximately €1,030.63 million, this ETF is part of the iShares SRI (Socially Responsible Investment) suite, catering to investors seeking to align their portfolios with sustainable development goals. The fund is UCITS-compliant, making it accessible to investors across Europe. It is denominated in USD but listed in EUR on XETRA, offering a bridge for European investors to gain exposure to the Japanese market with a focus on ESG principles.

The underlying index, Morningstar Japan TME NR JPY, is designed to represent the performance of Japanese large-cap companies that pass rigorous ESG screens. The fund’s portfolio is diversified across sectors, providing exposure to key segments of the Japanese economy while excluding companies involved in controversial activities or those with poor ESG performance. This approach aims to balance financial returns with positive societal impact.

For investors and fund managers, this ETF offers a liquid and cost-effective way to integrate ESG considerations into a Japanese equity allocation. The fund’s structure allows for transparency, with holdings disclosed daily, enabling investors to assess the ESG characteristics of the underlying securities. Additionally, the fund’s tracking error is typically low, ensuring close alignment with the performance of the underlying index.

Key features of this ETF include its focus on large-cap equities, which tend to be more stable and liquid compared to smaller-cap companies, and its emphasis on ESG factors, which is increasingly important for investors seeking to align their portfolios with global sustainability trends. The fund’s distribution policy (Dist) ensures that income generated by the portfolio is passed on to investors, making it suitable for those seeking regular income from their investments.