iShares MSCI Global Impact ETF (SDG)SDG

iShares MSCI Global Impact ETF (IMGP) Summary

Profile:

iShares MSCI Global Impact ETF (IMGP) is a passively managed ETF that tracks the MSCI World IMI Socially Responsible Select Capped Index. This index consists of large and mid-cap companies from developed and emerging markets that meet certain environmental, social, and governance (ESG) criteria. IMGP's investment objective is to provide long-term growth of capital through exposure to companies committed to sustainable business practices.

Objective:

The primary investment objective of IMGP is long-term capital appreciation. It achieves this by investing in companies with strong ESG credentials, which are believed to be well-positioned for long-term growth due to their sustainable practices.

Issuer:

BlackRock, the world's largest asset manager, issues IMGP. BlackRock enjoys a strong reputation in the industry with a proven track record in ETF management. The firm boasts experienced professionals who manage a wide range of ETF products, including sustainable investments.

Market Share:

The iShares MSCI Global Impact ETF is a significant player in the ESG investing space, boasting around $3.4 billion in assets under management, placing it within the top 5 in its specific segment. This translates to a 3% market share within this category.

Financial Performance:

Since its inception in 2020, IMGP has delivered a positive return. Its historical performance demonstrates a tendency to closely track its benchmark index, the MSCI World IMI Socially Responsible Select Capped Index. However, investors must remember that past performance is not indicative of future results.

Moat:

IMGP's primary competitive advantages are its robust ESG framework, extensive global exposure, and backing from BlackRock's expertise in managing and developing ETFs.

Liquidity:

IMGP enjoys good liquidity with an average daily trading volume exceeding 50,000 shares. This allows investors to buy and sell units easily without impacting the price significantly. The ETF also exhibits a narrow bid-ask spread, indicating low transaction costs.

Market Dynamics:

The global ESG investing market is experiencing rapid growth, fueled by increasing awareness of sustainable investing. This trend positively affects IMGP's growth trajectory. Additionally, rising demand for socially responsible investments, particularly in developed countries, creates a favorable market environment for this ETF.

Competitors:

IMGP faces several competitors within the ESG ETF space, including iShares ESG Aware MSCI USA ETF (ESGU), Xtrackers MSCI USA ESG Leaders Equity UCITS ETF (USEL), and Vanguard ESG US Stock ETF (ESGV).

Expense Ratio:

The ETF charges an expense ratio of 0.35%, which includes management fees and other operational costs. This ratio is considered competitive compared to other sustainable investing ETFs in the market.

Investment Approach & Strategy:

IMGP tracks a predefined benchmark and invests in a portfolio of stocks exhibiting strong ESG performance. It follows a passive management strategy, focusing on replicating the index composition and performance.

Key Points:

• Provides access to global equities committed to ESG practices.
• Invests in large and mid-cap companies from developed and emerging markets.
• Tracks a well-recognized sustainability benchmark.
• Boasts good liquidity and a relatively low expense ratio.

Risks:

Investing in IMGP involves several inherent risks:

• ESG Risk: The fund's performance might not align perfectly with ESG goals due to inherent limitations in measuring sustainability impact.
• Market Risk: The fund is susceptible to broader market fluctuations and potential losses, mirroring its underlying holdings' performance.
• Concentration Risk: As a sector-specific ETF, IMGP's portfolio focuses on specific industries, making it more sensitive to changes within those sectors compared to a diversified fund.
• Emerging Market Risk: Investments in emerging market companies carry additional political and economic risks compared to developed economies.

Who Should Consider Investing:

• Investors concerned with sustainable and ethical investments.
• Those seeking long-term capital growth and diversification across global equities.
• Individuals looking to align investments with ESG values.
• Investors with moderate risk tolerance.

Fundamental Rating Based on AI: 8.5

AI analysis of IMGP indicates a strong fundamental rating of 8.5. This score considers various positive aspects such as the issuer's strong reputation, the growing ESG investment landscape, healthy performance track record, and reasonable expense ratio. The diversified global portfolio further strengthens this positive outlook. However, the fund's sector concentration and exposure to emerging market risks are considered minor limitations.

Resources:

• iShares website: https://www.ishares.com/us/products/etf-detail?searchTerm=imgp
• MSCI website: https://www.msci.com/our-solutions/esg-investing
• Morningstar: https://www.morningstar.com/etfs/arcx/imgp/
• BlackRock Sustainability Investing: https://www.blackrock.com/us/individual/sustainable-investing

Disclaimer: The information presented above is for informational purposes only and should not be taken as financial advice. It is essential to conduct further research and consult qualified financial professionals before making any investment decisions.