(SRIL) iShares MSCI USA SRI - Ratings and Ratios

The iShares MSCI USA SRI UCITS ETF (SRIL) is designed to track the MSCI USA SRI Select Reduced Fossil Fuel Index, aiming to deliver a total return that encompasses both capital appreciation and income. This ETF focuses on US large-cap companies that meet specific socially responsible investing (SRI) criteria, while also reducing exposure to fossil fuels.

From a performance perspective, SRIL has demonstrated stability with its current price hovering near its 52-week high. To further analyze its performance, we can look at key metrics such as tracking error, which measures the ETFs ability to replicate the indexs returns. A lower tracking error indicates a more effective replication. Additionally, the ETFs expense ratio, which is a crucial KPI, directly impacts net returns. BlackRocks iShares ETFs are generally known for being cost-effective, but the exact expense ratio for SRIL should be verified.

SRILs underlying index, the MSCI USA SRI Select Reduced Fossil Fuel Index, applies a set of ESG (Environmental, Social, and Governance) criteria to select companies. This includes excluding companies involved in certain controversial activities and those with significant fossil fuel reserves. As a result, SRIL offers investors a way to align their investments with their values, focusing on companies that demonstrate strong ESG practices. Key Performance Indicators (KPIs) such as the ETFs carbon footprint, ESG rating, and sector allocation can provide further insights into its alignment with SRI goals.

In terms of investment strategy, SRIL can be used as a core holding within a portfolio, providing broad exposure to US large-cap equities with an SRI focus. Investors should consider metrics such as the ETFs dividend yield, price-to-earnings ratio, and sector allocation relative to its benchmark, the Morningstar US Large-Mid NR USD Index, to assess its potential for income generation and growth.