BlackRock unveils global equity ESG ETF

ESG investingBlackRock is launching its eleventh socially responsible ETF in Europe.

The iShares MSCI World SRI Ucits ETF delivers exposure to global stock markets with a focus on companies with the strongest environmental, social and governance (ESG) ratings.

The ETF has a total expense ratio of 0.30%.

MSCI ESG ratings assess how companies are exposed to and manage idiosyncratic risks such as strikes, factory shutdowns, litigation and broader industry issues that can create both significant risks and opportunities such as regulation and weather patterns.

The MSCI World SRI Select index which the fund tracks also excludes companies involved in severe controversies or in military weapons, civilian firearms, tobacco, alcohol, nuclear power, gambling, adult entertainment and genetically modified organisms.

Manuela Sperandeo, head of specialist sales, iShares Europe Middle East and Africa, said: “We consistently hear from our clients that they are looking more closely at improving the ESG and carbon profile of their investments, which they acknowledge helps manage risk in their portfolios.”

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