(ESGD) iShares ESG Aware MSCI EAFE - Ratings and Ratios

The iShares ESG Aware MSCI EAFE ETF (NASDAQ:ESGD) is an exchange-traded fund that tracks a specific index, investing at least 90% of its assets in the component securities of that index or in investments with similar economic characteristics. The underlying index focuses on large- and mid-capitalization equities in developed markets outside the U.S. and Canada, selected based on their positive environmental, social, and governance (ESG) characteristics.

From a portfolio perspective, ESGD offers exposure to international developed markets with a tilt towards companies that demonstrate strong ESG practices. This can be appealing to investors seeking to align their investments with their values or to mitigate ESG-related risks. Key Performance Indicators (KPIs) to monitor for ESGD include its tracking error relative to its underlying index, expense ratio, and the ESG score of its holdings. The funds AUM of $9.679 billion indicates a significant investor base, potentially contributing to liquidity.

In terms of investment strategy, ESGDs focus on ESG characteristics may lead to differences in sector allocation and stock selection compared to a broad international developed market index. For instance, it may underweight or exclude companies with poor ESG track records. Investors should evaluate the funds performance in various market conditions and compare its returns to those of its benchmark and peers. Other relevant KPIs include the funds dividend yield, turnover rate, and the average market capitalization of its holdings.

To further assess ESGDs suitability, investors should consider their overall investment objectives, risk tolerance, and time horizon. Its also crucial to monitor the funds adherence to its ESG criteria and the impact of these criteria on its performance. By doing so, investors can make informed decisions about whether ESGD aligns with their investment goals and values.