iShares ESG Aware ETF Returns 18.7% One-Year, 76% Five-Year with 0.15% Fee
iShares ESG Aware MSCI USA ETF returned 18.7% over one year and 76% over five years, versus SPY’s 17.8% and 74%, while charging a 0.15% expense ratio on $15.98 billion AUM. Its modest ESG tilt retains Nvidia, Apple, Microsoft and Exxon Mobil in top holdings with S&P 500 sector alignment.
1. Performance Highlights
Over the past year, the ETF delivered an 18.7% gain versus 17.8% for the broad U.S. equity benchmark and achieved a 76% five-year increase compared with 74%, confirming its ability to match market returns while integrating ESG considerations.
2. Portfolio Construction
The fund tracks the MSCI USA Extended ESG Focus Index, applying a modest ESG filter that preserves sector weights in line with the S&P 500. Its top holdings include Nvidia, Apple, Microsoft and Exxon Mobil, reflecting a tilt toward large-cap technology and energy names.
3. Fees, AUM and Outflows
With a 0.15% expense ratio and $15.98 billion in assets under management, the ETF offers cost-effective exposure. It saw $6.4 billion of outflows in Q1 2023 due to institutional model rebalancing, but its AUM has since stabilized around $16 billion.
4. Risks and Tradeoffs
Concentration risk is the primary concern, as the top five holdings drive a substantial portion of performance, and the fund’s 0.95% dividend yield underscores its growth orientation. Its restrained exclusion policy retains certain controversial sectors, such as defense and energy.