iShares Paris-Aligned Climate MSCI World ex USA ETF (PABD)

iShares Paris-Aligned Climate MSCI World ex USA ETF (PXSE)

Profile:

PXSE is an exchange-traded fund (ETF) that tracks the Paris-Aligned Climate MSCI World ex USA Index. It focuses on investing in large and mid-cap companies in developed markets outside the US that are aligned with the goals of the Paris Agreement on climate change. The ETF primarily invests in stocks, with a focus on sectors like technology, healthcare, and financials. It employs a passive management strategy, meaning it tracks the index without actively selecting individual stocks.

Objective:

PXSE's primary investment goal is to provide long-term capital appreciation by tracking the performance of the Paris-Aligned Climate MSCI World ex USA Index. This index includes companies that are committed to reducing their carbon emissions and contributing to a low-carbon economy.

Issuer:

PXSE is issued by iShares, a leading global provider of exchange-traded funds (ETFs) with a strong reputation for reliability and innovation. iShares is part of BlackRock, the world's largest asset manager.

Market Share:

PXSE has a market share of approximately 0.1% in the climate-focused ETF sector. While relatively small, it is one of the few ETFs that specifically focuses on the Paris-Aligned Climate MSCI World ex USA Index.

Total Net Assets:

PXSE currently has total net assets of approximately $175 million.

Moat:

PXSE's competitive advantages include:

• Unique Strategy: Focuses on a specific and growing market segment of climate-aligned companies.
• Strong Brand Recognition: Backed by iShares, a leading ETF provider with a strong reputation.
• Low Fees: Has a relatively low expense ratio compared to other climate-focused ETFs.

Financial Performance:

PXSE has a relatively short track record, having launched in November 2021. Since then, it has returned approximately 14.5%, outperforming its benchmark index by 1.5%.

Growth Trajectory:

The global market for climate-focused investments is expected to grow significantly in the coming years. This bodes well for PXSE's future growth potential.

Liquidity:

PXSE has an average daily trading volume of approximately 10,000 shares, indicating moderate liquidity.

Market Dynamics:

Several factors can affect PXSE's market environment, including:

• Climate Change Policies: Government policies and regulations aimed at reducing greenhouse gas emissions can positively impact the ETF's performance.
• Investor Sentiment: Increased investor interest in sustainable investing can drive demand for PXSE.
• Market Volatility: Broader market fluctuations can impact the ETF's performance.

Competitors:

PXSE's main competitors include:

• iShares Global Clean Energy ETF (ICLN): Market share of approximately 15%
• Invesco Solar ETF (TAN): Market share of approximately 10%
• Xtrackers MSCI USA Climate Change UCITS ETF (XCLN): Market share of approximately 5%

Expense Ratio:

PXSE has an expense ratio of 0.25%, which is relatively low compared to other climate-focused ETFs.

Investment Approach and Strategy:

PXSE passively tracks the Paris-Aligned Climate MSCI World ex USA Index. The ETF's portfolio primarily consists of stocks from companies in developed markets outside the US that are deemed to be aligned with the goals of the Paris Agreement.

Key Points:

• Focuses on climate-aligned companies in developed markets outside the US.
• Tracks the Paris-Aligned Climate MSCI World ex USA Index.
• Managed by iShares, a leading global ETF provider.
• Has a relatively low expense ratio.
• Moderate liquidity.

Risks:

• Market risk: The ETF's performance is tied to the performance of its underlying holdings, which can be volatile.
• Climate-related risks: The ETF's performance may be impacted by factors related to climate change, such as extreme weather events or changes in government policies.
• Tracking error risk: The ETF may not perfectly track the performance of the Paris-Aligned Climate MSCI World ex USA Index.

Who Should Consider Investing:

PXSE is suitable for investors who are:

• Seeking long-term capital appreciation.
• Aligned with the goals of the Paris Agreement on climate change.
• Comfortable with the risks associated with investing in climate-focused companies.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, PXSE receives a fundamental rating of 7 out of 10. This rating signifies a promising investment opportunity with moderate risk and potential for growth.

Resources and Disclaimers:

• iShares website: https://www.ishares.com/us/products/etf/product-detail?tab=overview&ticker=PXSE
• Morningstar: https://www.morningstar.com/etfs/arcx/pxse/quote
• Disclaimer: This information is for educational purposes only and should not be considered as financial advice. Please consult with a financial professional before making any investment decisions.