iShares MSCI Global Impact ETF (SDG)

iShares MSCI Global Impact ETF (NASDAQ: MPCT) Overview

Profile: MPCT is an actively managed exchange-traded fund (ETF) that seeks to track the performance of the MSCI ACWI IMI Select ESG Impact Leaders Index. This index comprises companies with high Environmental, Social, and Governance (ESG) ratings and significant contributions to the UN Sustainable Development Goals (SDGs). MPCT invests in a diversified portfolio of large, mid, and small-cap stocks across various sectors and countries.

Objective: The primary objective of MPCT is to provide long-term capital appreciation by investing in companies that demonstrate strong ESG performance and contribute to positive global impact.

Issuer: BlackRock, Inc. is the issuer of MPCT. BlackRock is a leading global investment manager with a strong reputation for financial strength and expertise in ESG investing.

Market Share: MPCT represents a small portion of the global impact investing market. The impact investing ETF market is still relatively new and growing rapidly.

Total Net Assets: As of November 2023, MPCT has total net assets of approximately $1.2 billion.

Moat: MPCT's competitive advantage lies in its active management approach and focus on ESG investing. The ETF leverages BlackRock's extensive research and ESG expertise to select companies with high impact potential.

Financial Performance: Since its inception in July 2020, MPCT has delivered a cumulative return of approximately 15%. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison: MPCT has outperformed its benchmark, the MSCI ACWI IMI Index, since its inception. This suggests that the ETF's active management approach has been effective in identifying high-impact companies.

Growth Trajectory: The global impact investing market is expected to experience significant growth in the coming years. This trend is fueled by increasing investor demand for investments that align with their values and contribute to positive social and environmental outcomes.

Liquidity: MPCT has an average daily trading volume of approximately 50,000 shares. This indicates that the ETF is relatively liquid and easy to buy and sell.

Market Dynamics: Factors such as government policies, economic conditions, and investor sentiment can affect the performance of MPCT.

Competitors: Key competitors of MPCT include Xtrackers MSCI USA ESG Leaders Equity ETF (USSG), SPDR S&P 500 ESG ETF (EFIV), and iShares ESG Aware MSCI USA ETF (ESGU).

Expense Ratio: The expense ratio of MPCT is 0.4%.

Investment Approach and Strategy: MPCT uses a quantitative screening process to identify companies with high ESG ratings and significant contributions to the SDGs. The ETF invests in a diversified portfolio of stocks across various sectors and countries.

Key Points:

• Invests in companies with high ESG ratings and contributions to the SDGs.
• Actively managed by BlackRock.
• Diversified portfolio across sectors and countries.
• Strong track record of outperforming its benchmark.
• Relatively liquid and easy to trade.

Risks:

• Market risk: The value of MPCT can fluctuate due to changes in the overall stock market.
• ESG risk: The performance of companies with high ESG ratings may not always be positive.
• Management risk: The success of MPCT depends on the effectiveness of BlackRock's management team.

Who Should Consider Investing:

• Investors who are looking for a long-term investment that aligns with their values.
• Investors who believe that ESG investing can generate positive financial returns.
• Investors who are comfortable with the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

Based on an analysis of the factors mentioned above, MPCT receives a Fundamental Rating of 7 out of 10. This rating is supported by the ETF's strong ESG focus, active management approach, track record of outperformance, and growth potential. However, investors should also consider the risks associated with MPCT before making an investment decision.

Resources:

• iShares MSCI Global Impact ETF website: https://www.ishares.com/us/products/etf/product-detail?productId=266835
• BlackRock website: https://www.blackrock.com/
• MSCI website: https://www.msci.com/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.