iShares MSCI KLD 400 Social ETF (DSI)

Overview

The iShares MSCI KLD 400 Social ETF (KLD) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance (ESG) characteristics as identified by the index provider. It focuses on large and mid-cap U.S. stocks with high ESG ratings.

Reputation and Reliability

BlackRock is a well-established and reputable asset manager with a strong track record of managing ETFs.

Management Expertise

BlackRock has extensive expertise in managing ETFs and passive investment strategies.

Goal

The primary goal of KLD is to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI KLD 400 Social Index.

Investment Approach and Strategy

Strategy: KLD aims to track a specific index, the MSCI KLD 400 Social Index.

Composition The ETF holds stocks of U.S. companies with positive ESG characteristics.

Market Share: KLD holds a significant market share within the ESG-focused ETF segment, though precise figures fluctuate and depend on the competitive pool under consideration.

Total Net Assets (AUM): 796000000

Key Competitors

• Xtrackers S&P 500 ESG ETF (SNPE)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Nuveen ESG Large-Cap Value ETF (NULV)

Competitive Landscape

The ESG ETF market is competitive. KLD benefits from BlackRock's established brand and has a long track record. Competitors offer variations in ESG screening criteria and index construction. KLD may have advantages in liquidity due to its size, but its screening methodology might differ from those of competitors, appealing to different ESG preferences.

Historical Performance: Historical performance data should be sourced from financial data providers; it varies with market conditions.

Benchmark Comparison: The ETFu2019s performance should be compared to the MSCI KLD 400 Social Index to assess tracking efficiency.

Expense Ratio: 0.09

Average Trading Volume

KLD's average trading volume indicates moderate liquidity, which reduces the risk of large price swings upon buying or selling.

Bid-Ask Spread

The bid-ask spread of KLD is generally tight, suggesting efficient trading and lower transaction costs.

Market Environment Factors

Economic indicators such as GDP growth, interest rates, and inflation can impact KLD's performance. Growing awareness and investor demand for ESG investments positively influence its prospects. Current market conditions, particularly sector rotations, will also affect KLD.

Growth Trajectory

KLD's growth trajectory is tied to the overall growth in ESG investing and BlackRock's ability to attract and retain assets. Changes to strategy and holdings occur to maintain index alignment.

Competitive Edge

KLD's competitive advantage stems from its well-established presence in the ESG ETF market and BlackRock's brand recognition. The fund focuses on companies that meet specific ESG criteria, appealing to socially conscious investors. Its significant AUM provides liquidity and scale advantages. The ETF's straightforward index-tracking approach offers transparency and simplicity. By excluding companies with negative ESG characteristics, it differentiates itself from broader market ETFs.

Volatility

KLD's historical volatility depends on the volatility of the underlying stocks and the overall market. Investors should consult historical volatility metrics for accurate figures.

Market Risk

Specific risks include market risk, sector concentration risk (depending on the composition of the index), and ESG screening risk (the potential for subjective interpretations of ESG criteria).

Ideal Investor Profile

The ideal investor for KLD is someone seeking socially responsible investments with moderate risk tolerance and a long-term investment horizon.

Market Risk

KLD is best suited for long-term investors who align with ESG principles; it can be suitable for both passive index followers and those integrating ESG factors into their portfolios.

The iShares MSCI KLD 400 Social ETF provides investors with access to a portfolio of U.S. companies exhibiting positive ESG characteristics. Managed by BlackRock, it offers a relatively low expense ratio and moderate liquidity. Its performance is closely tied to the MSCI KLD 400 Social Index, making it a suitable choice for socially conscious investors seeking to align their investments with their values. While facing competition, KLD benefits from BlackRock's reputation and the growing trend towards ESG investing. Investors should consider the potential risks related to market volatility and ESG screening when evaluating this ETF.

Data Sources:

• iShares Official Website
• MSCI Index Fact Sheet
• Financial News Providers (e.g., Bloomberg, Reuters)
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions may change, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.