(OM3L) iShares MSCI USA ESG - Ratings and Ratios

The iShares MSCI USA ESG Enhanced UCITS ETF USD Inc (OM3L) is a financial product designed to align with the growing demand for sustainable investing. It tracks the Morningstar US Large-Mid NR USD index, which focuses on large-cap and mid-cap companies in the United States. The fund is managed by BlackRock, one of the largest asset managers globally, and is domiciled in Ireland, which offers certain regulatory and tax efficiencies for European investors.

With an AUM of 5.84 billion EUR, this ETF is substantial in size, indicating strong investor interest and liquidity. It is listed on XETRA, a major European stock exchange, making it accessible to a broad range of investors. The fund is categorized under US Large-Cap Blend Equity, meaning it provides exposure to a mix of growth and value stocks within the large-cap universe. However, the key differentiator here is its ESG focus, which tilts the portfolio toward companies with stronger environmental, social, and governance practices.

From a portfolio construction standpoint, the ETF employs an enhanced indexing strategy, which means it doesn’t strictly follow the index but instead uses an optimized approach to improve ESG outcomes without significantly deviating from the underlying market exposure. This makes it a hybrid between pure passive investing and active management. For investors and fund managers, this fund is notable because it balances the efficiency of ETFs with the increasingly important consideration of sustainability.