Posted inESG

Blackrock makes inroads on sustainability pledge

Global investment manager Blackrock has rolled out three products for investors looking to manage long-term risks relating to environmental, social and governance factors.

It follows a commitment made by chief executive Larry Fink to make sustainability the firm’s standard for investing.

Data from Blackrock revealed that the sustainable ETF industry attracted $5.7bn (€5.1bn), worldwide, in February 2020.

The sell-off at the end of the month, prompted by coronavirus fears, saw inflows of $1.2bn in just one week.

What’s on offer?

The three products are:

  • iShares MSCI EMU SRI Ucits ETF (SMUA): which provides targeted exposure to companies within the European Monetary Union stock market with the highest ESG scores. It tracks the MSCI EMU SRI Select Reduced Fossil Fuel index and carries a TER of 0.20%. The fund is the ESG alternative to the iShares Core MSCI EMU Ucits ETF (CEU)
  • iShares $ Corp Bond ESG UCITS ETF (SUOU): it is an ESG alternative to the flagship iShares $ Corp Bond UCITS ETF (LQDE). This fund offers exposure to investment grade USD-denominated corporate bonds with high MSCI ESG ratings. It tracks the Bloomberg Barclays MSCI US Corporate Sustainable SRI index and carries a TER of 0.15%
  • iShares Smart City Infrastructure UCITS ETF (City): A thematic fund aiming to capitalise on the opportunities presented by the new generation of smart megacities offering sustainable ways of living, in the wake of the global migration from the countryside to cities. The STOXX Global Smart City Infrastructure index also incorporates ESG screening criteria for certain sectors, risks and controversies. It carries a TER of 0.40%.

A spokesperson confirm to Expert Investor that the ETFs are aimed at investors across Europe; including UK, France, Belgium, Luxembourg, Germany, Austria, Spain, Italy, Netherlands, Denmark, Sweden and Finland.

Kirsten Hastings

Kirsten is international editor of Expert Investor and International Adviser. She joined Last Word Media in October 2015. Kirsten has a Masters in Financial Journalism from the...

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