HSBC Among Top Holdings as ESG ETF Delivers 20.55% Return
The iShares ESG Aware MSCI EAFE ETF returned 20.55% over the past year and yields 2.19%, with HSBC ranking among its top five holdings. A weaker dollar and renewed demand for developed-market dividend stocks have driven ETF inflows, boosting demand for HSBC shares.
1. ETF Performance and HSBC Exposure
The iShares ESG Aware MSCI EAFE ETF has gained 20.55% over the last year and is up about 3% year-to-date, with HSBC listed among its top five equity holdings. This performance highlights rising investor interest in dividend-paying, ESG-screened multinationals.
2. Income Profile and Cost Structure
The ETF offers a 2.19% semi-annual dividend yield and charges a low 0.20% expense ratio, enhancing its appeal for income-focused investors. HSBC’s inclusion among leading positions suggests the bank benefits from growing ESG-oriented portfolio allocations.
3. Currency and ESG Screening Risks
Currency fluctuations remain a key risk as a stronger dollar can erode returns for US-based investors, indirectly affecting HSBC’s share value within the ETF. The fund’s sector-based ESG filter also allows certain controversial industries, underscoring nuances in HSBC’s ESG positioning.