ETF Hearsay: BlackRock files for new actively-managed ETF (not an iShares)

BlackRock Future Climate and Sustainable Economy ETF

Ticker: TBD

Exchange: TBD

Expense ratio: TBD

Original filing date: April 15, 2021

Effective date: June 29, 2021

Listing Date: TBD

CUSIP: TBD

Active: Yes

Index / Benchmark: Not Applicable

Investment Objective:

Seeks to maximize total return by investing in companies that BlackRock Fund Advisors believes are furthering the transition to a lower carbon economy.

Investment Strategy / Index Methodology:

Companies that are furthering the transition to a lower carbon economy including themes such as:

sustainable energy
circular economy
future of transport and nutrition

UNIVERSE

Equity securities issued by U.S. and non-U.S. companies in any market capitalization range.

Investment Process

BlackRock will evaluate certain environmental criteria of securities, including metrics related to carbon intensity and carbon emissions generated by the companies that issued those securities, utilizing proprietary BlackRock research.

The Fund will seek to invest in a portfolio of equity securities that has an aggregate environmental assessment that is better than the aggregate environmental assessment of the MSCI ACWI Multiple Industries Select Index.

The Fund intends for its portfolio of securities to be aligned with the goals of the United Nations-convened Net-Zero Asset Owner Alliance which seeks to align portfolios with a sub-2°C scenario, addressing Article 2.1c of the Paris Agreement.

In order to align with a sub-2°C scenario, the Fund will:

1) seek to lower the carbon intensity of the portfolio on an annual basis, to ultimately reach a net zero greenhouse gas emissions portfolio in the aggregate by 2050;

2) engage with the companies that account for 65% of greenhouse gas emissions in the portfolio each year; and

3) issue a yearly report that is made public on the Fund’s progress in lowering greenhouse gas emissions emissions/climate-positive investments over the previous year.

The Fund will also include sector specific alignment targets for select higher emission sectors which will include reducing carbon intensity in such sectors on a year-over-year basis.

In addition, the Fund will not invest in companies currently operating in the following industries: