iShares ESG Aware MSCI EAFE ETF: A Guide to ESG Investing

The iShares ESG Aware MSCI EAFE ETF is a great option for investors looking to incorporate environmental, social, and governance (ESG) considerations into their portfolios. This ETF tracks the MSCI EAFE ESG Focus Index, which is designed to provide exposure to developed market stocks outside of North America, while also considering ESG factors.

The ESG Aware MSCI EAFE ETF has a relatively low expense ratio of 0.22%, making it an attractive option for cost-conscious investors. This is likely due to the ETF's large asset base and the efficiency of its index-tracking strategy.

With the iShares ESG Aware MSCI EAFE ETF, you can obtain exposure to a portfolio of large and mid cap international stocks that emphasize companies with positive environmental, social, and governance (ESG) characteristics.

The ETF has a management team with an average tenure of 6.76 years, which is more important for actively managed ETFs than passive index ETFs. This suggests a level of experience and stability in the team's decision-making process.

The ETF's investment selection and management focus on ESG, making it a great option for those looking for a sustainable investing approach. It meets the SEC requirement of being classified as a diversified fund, providing a sense of security for investors.

This ETF is perfect for those looking to invest in a more sustainable way.

It provides exposure to large- and mid-cap stocks in Europe, Australia, Asia, and the Far East.

You'll be tilting towards those with favorable environmental, social, and governance (ESG) ratings, which is a key aspect of sustainable investing.

The goal is to achieve similar risk and return to the MSCI EAFE Index, but with a more sustainable outcome.

This ETF is ideal for building a sustainable equity portfolio for the long-term.

The XSEA ETF is a great choice for anyone looking to invest in a sustainable way. It offers exposure to a portfolio of large and mid cap international stocks that emphasize companies with positive environmental, social, and governance (ESG) characteristics.

By investing in XSEA, you can seek similar risk and return to the MSCI EAFE Index while achieving a more sustainable outcome. This is a big plus for those who want to do good while doing well.

The ETF uses ESG ratings provided by MSCI on over 6,000 companies based on 37 industry-specific issues. This means you can trust that your investments are being made with a thorough understanding of the companies' environmental, social, and governance practices.

One of the best things about XSEA is its low cost. It's a great option for those looking to use sustainable investing as a building block for the core of their portfolio.

The iShares ESG Aware MSCI EAFE ETF is a great choice for investors looking for a socially responsible option. It's a passively managed ETF that tracks the MSCI EAFE Extended ESG Focus Index.

This ETF has been around since June 28, 2016, and is managed by a team of three experienced professionals with an average tenure of 6.76 years. The team's stability is a plus, especially for investors who value consistency.

The ETF has a diverse portfolio of 408 securities, with the top 10 holdings making up just 13.8% of the assets. This diversification helps to minimize risk and maximize returns.

Here are some key statistics about the ETF's portfolio:

The ETF's low bond and cash allocations mean that it's investing in stocks, which can provide higher returns over the long term.

The iShares ESG Aware MSCI EAFE ETF has a solid foundation. It was launched on June 28, 2016.

Here are the key details about the fund:

The fund is managed by Greg Savage.

The iShares ESG Aware MSCI EAFE ETF has a portfolio turnover rate of 25%, which is lower than the average of 41% for the Foreign Large Blend category. This suggests that the fund holds its assets for a longer period, potentially reducing expenses and increasing aftertax returns.

The fund's portfolio turnover rate indicates that it holds its assets for around 4 years. In January 2025, the fund returned 4.6%, earning it a grade of C, as the Foreign Large Blend category had an average return of 4.2%.

The iShares ESG Aware MSCI EAFE ETF has a portfolio turnover rate of 25%, which is lower than the average portfolio turnover of 41% for the Foreign Large Blend category. This lower turnover rate can result in lower expenses and potentially higher after-tax returns.

The ETF's expense ratio is 0.21%, which is relatively low compared to other investment options. This low expense ratio can help investors save money over time.

In terms of performance, the iShares ESG Aware MSCI EAFE ETF returned 4.6% in January 2025, earning it a grade of C. This return was 0.4 percentage points better than the category average.

Here's a breakdown of the ETF's returns over different time periods:

Note that the 10-year return is not available for the iShares ESG Aware MSCI EAFE ETF.

Fees can add up quickly, and it's essential to understand what you're paying for.

The management fee, a common expense, can range from 0.20% to 0.25% as seen in the prospectus.

You may also see other expenses, such as acquired fund fees and expenses, which can be as low as 0.00%.

Other expenses, like those mentioned in the prospectus, can be as low as 0.01%.

The expense ratio, which includes management fees and other expenses, can be as high as 0.21% or 0.28%.

Here's a breakdown of the fees mentioned in the prospectus:

When evaluating investment options, it's essential to consider the dividend yield. For example, the ESGD fund has a dividend yield of 2.67%. This is significantly higher than the category low of 0.00% and lower than the category high of 17.49%.

The dividend yield of a fund can give you an idea of its potential return on investment. A higher dividend yield typically means a higher potential return, but it also comes with a higher level of risk.

The ESGD fund's dividend yield is ranked 24.84% in its category, indicating it's performing well in this area. However, it's essential to consider other factors, such as fees, before making an investment decision.

Here's a comparison of the dividend yields for ESGD and its category:

Keep in mind that a high dividend yield doesn't always guarantee a high return, and you should always research the fund thoroughly before investing.

The iShares ESG Aware MSCI EAFE ETF is designed to track the MSCI EAFE ESG Focus Index, which aims to provide exposure to the developed markets outside of North America and the Pacific, while incorporating ESG considerations.

This ETF has a net expense ratio of 0.17%, which is relatively low compared to other ESG-focused ETFs.

The fund's holdings include companies from various industries, such as technology, healthcare, and finance, with a focus on those that have demonstrated strong ESG practices.

The MSCI EAFE ESG Focus Index, which the ETF tracks, uses a combination of ESG metrics to select the underlying companies, including those related to environmental, social, and governance factors.

The index has a 3-year annualized return of around 5%, which is competitive with other developed market ETFs.

The fund's top holdings include companies like Nestle, Roche Holding, and Novartis, which are well-established players in their respective industries.