iShares details ETF that targets equities with lower carbon exposure

By Toni Weeks

San Luis Obispo, Calif., Dec. 5 – iShares Trust announced in an N-1A filing with the Securities and Exchange Commission more details on its upcoming new fund that targets companies with lower carbon emissions.

The iShares MSCI ACWI Low Carbon Target ETF will seek to track the investment results of an index composed of large and mid-capitalization, developed and emerging-market equities with a lower carbon exposure than that of the broad market.

The exchange-traded fund seeks to track the investment results of the MSCI ACWI Low Carbon Target index, which was developed by MSCI Inc. and is designed to address two dimensions of carbon exposure: carbon emissions and potential carbon emissions from fossil fuel reserves.

By overweighting companies with low carbon emissions relative to sales and those with low potential carbon emissions from fossil fuel reserves relative to market capitalization, the index aims to reflect a lower carbon exposure as compared to the broad market.

Matthew Goff, Diane Hsiung, Jennifer Hsui and Greg Savage are the portfolio managers.

The fund will trade on the NYSE Arca under the symbol “CRBN.”

There will be no shareholder fees. Including management fees of 0.33% and taking into account a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 0.2%.

San Francisco-based BlackRock Fund Advisors is the investment adviser.

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