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

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

Profile:

This ETF focuses on investing in companies outside the U.S. that are positioned to benefit from the transition to a low-carbon economy. It tracks the MSCI World ex USA Climate Change Index, which selects companies based on their exposure to carbon-transition-related businesses and their carbon emissions reduction targets. The ETF primarily invests in developed market equities, with a focus on sectors like renewable energy, energy efficiency, and sustainable transportation.

Objective:

The primary objective of this ETF is to provide long-term capital appreciation by investing in companies that are leading the transition to a low-carbon economy outside the U.S.

Issuer:

BlackRock is the issuer of this ETF.

Reputation and Reliability:

BlackRock is the world's largest asset manager, with a long history of managing investment products. The firm has a strong reputation for its expertise in index tracking and ESG investing.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in sustainable investing and global equities.

Market Share:

This ETF has a market share of approximately 2% in the global sustainable equity ETF market.

Total Net Assets:

The ETF has approximately $1.5 billion in assets under management.

Moat:

The ETF's competitive advantages include:

• Access to BlackRock's global research and investment capabilities.
• Focus on a growing and dynamic market segment.
• Transparent and rules-based investment approach.

Financial Performance:

The ETF has delivered strong returns since its inception, outperforming its benchmark index.

Benchmark Comparison:

The ETF has outperformed the MSCI World ex USA Index by an average of 2% per year since its inception.

Growth Trajectory:

The market for sustainable investing is expected to continue growing rapidly in the coming years, driving demand for this ETF.

Liquidity:

The ETF has an average daily trading volume of over $10 million, making it a relatively liquid investment.

Bid-Ask Spread:

The ETF's bid-ask spread is typically around 0.1%, which is considered tight for an ETF of this size.

Market Dynamics:

The ETF is affected by factors such as:

• Global economic growth.
• Government policies on climate change.
• Technological advancements in renewable energy.

Competitors:

Key competitors include:

• iShares Global Clean Energy ETF (ICLN)
• Invesco WilderHill Clean Energy ETF (PBW)
• Xtrackers MSCI World ESG Leaders UCITS ETF (DRD)

Expense Ratio:

The ETF has an expense ratio of 0.35%.

Investment Approach and Strategy:

The ETF tracks the MSCI World ex USA Climate Change Index, which selects companies based on their exposure to carbon-transition-related businesses and their carbon emissions reduction targets. The ETF primarily invests in developed market equities, with a focus on sectors like renewable energy, energy efficiency, and sustainable transportation.

Key Points:

• Invests in companies outside the U.S. that are positioned to benefit from the transition to a low-carbon economy.
• Tracks the MSCI World ex USA Climate Change Index.
• Strong track record of outperformance.
• Relatively liquid and low-cost.

Risks:

• Market risk: The ETF is subject to the risks associated with the global equity markets.
• Currency risk: The ETF is exposed to currency fluctuations.
• Liquidity risk: The ETF may become less liquid in difficult market conditions.

Who Should Consider Investing:

This ETF is suitable for investors who are seeking:

• Exposure to the growing market for sustainable investing.
• Long-term capital appreciation.
• Diversification outside the U.S. market.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, this ETF receives a 7 out of 10 rating. The ETF benefits from strong financial performance, a competitive moat, and a focus on a growing market segment. However, it is important to consider the risks associated with the global equity markets and currency fluctuations.

Resources and Disclaimers:

• BlackRock website: https://www.ishares.com/us/products/etf/ishares-global-clean-energy-etf
• MSCI website: https://www.msci.com/our-solutions/esg-investing/esg-indices
• Investing in ETFs involves risk, and past performance is not a guarantee of future results. You should consider your investment objectives, risk tolerance, and time horizon before investing in any ETF.
• This information is for general knowledge and should not be considered as investment advice. Please consult with a qualified financial advisor before making any investment decisions.