Analysis

Key stats

About iShares ESG Advanced MSCI EM ETF

EMXF is passively managed to invest in emerging markets equities with above average ESG ratings relative to its sector peers. The underlying index starts with the MSCI Emerging Markets Index (the parent) and excludes companies engaged in controversial activities like nuclear weapons, genetic engineering, palm oil, private prisons and predatory lending. Firms in the energy sector per GICS methodology, including those involved in fossil fuels, reserve ownership, related revenues and power generation are also excluded - with the exception of firms having bulk of their revenues tied to alternative/renewable energy. The remaining companies are ranked based on a sector-specific ESG key issues (e.g. carbon emissions) selection and weighting model, only those with above average scores (BBB and up) are selected. The market-cap-weighted index excludes small-cap firms, and during its quarterly review, limits each issuer at 5% cap.