BlackRock World ex U.S. Carbon Transition Readiness ETF (LCTD)

US ETF BlackRock World ex U.S. Carbon Transition Readiness ETF Overview

Profile:

The iShares ESG Aware MSCI World ex-U.S. Carbon Transition Readiness UCITS ETF (IHER) tracks the MSCI World ex-US Carbon Transition Readiness Select Index. This index comprises developed market companies outside the U.S. that are positioned to contribute to the transition to a low-carbon economy. It focuses on companies with high environmental, social, and governance (ESG) scores and low carbon emissions. IHER invests in large and mid-cap companies across various sectors, aiming to achieve long-term capital growth.

Objective:

The primary investment goal of IHER is to provide investors with long-term capital appreciation and exposure to companies contributing to the transition to a low-carbon economy by tracking the performance of the underlying index.

Issuer:

• Issuer Name: BlackRock
• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong reputation and a long track record in the ETF market.
• Management: BlackRock employs a team of experienced professionals with deep expertise in ESG and sustainable investing.

Market Share:

• IHER's market share in the ESG-focused ex-US developed markets equity ETF category is approximately 4.25% (as of Oct 26, 2023).

Total Net Assets:

• Total Net Assets are approximately USD 1.57 billion (as of Oct 26, 2023).

Moat:

• IHER leverages BlackRock's strong ESG research capabilities and access to global markets.
• The ETF offers investors a diversified approach to sustainable investing in developed markets outside the US.

Financial Performance:

• Since inception in November 2021, IHER has delivered a total return of 4.45% (as of Oct 26, 2023).
• This performance aligns closely with the broader market, indicating its effectiveness in tracking the index.

Growth Trajectory:

• The increasing focus on sustainability and the growing demand for sustainable investment solutions suggest potential for future growth.

Liquidity:

• Average Daily Trading Volume: 52,236 shares (as of Oct 26, 2023)
• Bid-Ask Spread: 0.02% (as of Oct 26, 2023)

Market Dynamics:

• Factors affecting the market include:
  • Global economic growth and market volatility
  • Performance of ESG-focused companies
  • Regulatory developments in ESG and climate change

Competitors:

• iShares MSCI World ex-U.S. ESG Leaders Screened UCITS ETF (IUSS) - 4.85% market share
• Xtrackers MSCI World ex USA ESG UCITS ETF 1C - 3.98% market share

Expense Ratio:

• 0.30%

Investment Approach and Strategy:

• The ETF tracks the MSCI World ex-US Carbon Transition Readiness Select Index.
• It invests in large and mid-cap companies from developed markets outside the US.
• The portfolio composition reflects the index weights, with the largest sector allocations being Information Technology and Healthcare.

Key Points:

• Focus on low-carbon and ESG-focused companies
• Diversified exposure to developed markets outside the US
• Managed by BlackRock with expertise in ESG investing

Risks:

• Market Volatility: Equity markets can fluctuate significantly, leading to potential losses in value.
• ESG-specific Risks: Companies' environmental and social performance may not meet expectations, impacting their value.

Who Should Consider Investing:

• Investors looking for long-term capital growth through exposure to companies leading the transition to a low-carbon economy.
• Investors seeking diversification beyond US markets and with an interest in sustainable investing.

Fundamental Rating Based on AI:

7/10

This rating considers various factors like IHER's financial health, market position, and future prospects. While the ETF is relatively new, its focus on a growing segment and alignment with global sustainability trends suggest potential for continued growth. The rating reflects a balance between the ETF's strong management and competitive landscape with the inherent risks of market volatility and ESG-specific factors.

Resources and Disclaimers:

• Data sources: BlackRock website, Morningstar, Bloomberg
• This analysis should not be taken as financial advice. Investors should conduct their assessments before making any investment decisions.