Analysis

Key stats

About iShares Environmentally Aware Real Estate ETF

ERET utilizes an ESG approach to real estate investing. The selection process starts with its parent index, the FTSE EPRA Nareit Developed Index, a broad universe of REITs and real estate companies from developed markets. The fund excludes firms engaged in tobacco, controversial weapons, producers and retailers of civilian firearms, and thermal coal, as well as those involved in controversies related to the ten UN Global Compact principles. Remaining companies are then weighted to target, in aggregate: a) a minimum of 10% green certification, b) a 30% increase in green certification, c) a 10% reduction in energy usage both relative to the parent index, and d) a level of carbon emission intensity that is better than that of the initial universe. Sector and country exposures must be within 2% of the parent index weight. At each annual review and reconstitution, these constraints, as well as the green certification and energy usage targets, may be relaxed if infeasible.