iShares MSCI ACWI Low Carbon Target ETF (CRBN)

ETF Summary: iShares MSCI ACWI Low Carbon Target ETF (CRBN)

Profile:

CRBN is an ETF that tracks the MSCI ACWI Low Carbon Target Index. This index aims to represent large and mid-cap companies across 23 developed and 24 emerging markets, while excluding companies with high carbon emissions. The ETF offers investors exposure to a diversified portfolio of equities with a focus on sustainability.

Objective:

The primary investment goal of CRBN is to provide long-term capital growth by tracking the performance of the MSCI ACWI Low Carbon Target Index.

Issuer:

BlackRock:

• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong reputation for product innovation and expertise in managing index-tracking funds.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in sustainable investing.

Market Share:

CRBN has a market share of approximately 2.5% in the low carbon ETF category.

Total Net Assets:

As of November 10, 2023, CRBN has total net assets of approximately $1.2 billion.

Moat:

• Sustainable Investment Focus: CRBN provides investors with access to a diversified portfolio of low-carbon companies, aligning with the growing demand for sustainable investment strategies.
• BlackRock's Expertise: BlackRock's robust infrastructure and investment research capabilities allow for efficient portfolio management and index tracking.

Financial Performance:

• Historical Performance: Since its inception in 2019, CRBN has delivered a total return of approximately 25%.
• Benchmark Comparison: CRBN has outperformed the MSCI ACWI Index, which has returned approximately 18% over the same period.

Growth Trajectory:

The increasing demand for sustainable investing and the growing awareness of climate change suggest positive growth potential for CRBN.

Liquidity:

• Average Trading Volume: CRBN has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%.

Market Dynamics:

• Economic Indicators: Global economic growth and interest rate trends can impact the performance of equities and thus CRBN.
• Sector Growth Prospects: The growth prospects of the underlying companies and sectors represented in the index can influence the ETF's performance.
• Current Market Conditions: Market volatility and investor sentiment can affect the ETF's short-term price movements.

Competitors:

• iShares Global Clean Energy ETF (ICLN) - Market Share: 5.5%
• Invesco WilderHill Clean Energy ETF (PBW) - Market Share: 4.5%

Expense Ratio:

The expense ratio for CRBN is 0.20%.

Investment Approach and Strategy:

• Strategy: CRBN passively tracks the MSCI ACWI Low Carbon Target Index.
• Composition: The ETF primarily invests in equities of companies with low carbon emissions across various sectors and countries.

Key Points:

• Provides exposure to a diversified portfolio of low-carbon companies.
• Offers long-term capital growth potential.
• Aligned with sustainable investing trends.
• Managed by BlackRock, a leading asset manager.

Risks:

• Volatility: CRBN's value can fluctuate due to market movements and changes in investor sentiment.
• Market Risk: The performance of the underlying companies and sectors can impact the ETF's value.
• Tracking Error: The ETF may not perfectly track the performance of the index.

Who Should Consider Investing:

• Investors seeking exposure to a diversified portfolio of low-carbon companies.
• Investors with a long-term investment horizon.
• Investors who align with sustainable investing principles.

Fundamental Rating Based on AI:

8/10

CRBN demonstrates strong fundamentals based on its robust management, sustainable investment focus, and competitive expense ratio. The ETF's historical performance and growth potential are also promising. However, investors should be aware of the associated risks and ensure the ETF aligns with their individual investment goals.

Resources and Disclaimers:

• iShares MSCI ACWI Low Carbon Target ETF website: https://www.ishares.com/us/products/239704/ishares-msci-acwi-low-carbon-target-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/crbn/quote
• BlackRock: https://www.blackrock.com/us/individual/products/239704/ishares-msci-acwi-low-carbon-target-etf

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.