Six funds allow investors to align beliefs with investments, according to head of iShares
The RBC iShares alliance has introduced its first set of new products with the iShares Sustainable Core ETF Suite.
It consists of six ESG-oriented ETFs, now trading on the Toronto Stock Exchange, and will be managed by BlackRock Canada, an indirect wholly-owned subsidiary of BlackRock.
The company believes the suite is the first of its kind to offer investors broadbased, low-cost RI solutions. It includes four ESG equity ETFs and two ESG bond ETFs, which feature exposure to Canadian, US, international and emerging markets, along with Canadian aggregate and short-term bond exposures.
Pat Chiefalo, Managing Director, Head of iShares, BlackRock Canada, said it’s vital that investors be able to align their beliefs with their investments. “As the first solutions introduced under the RBC iShares alliance, it was important for us to bring a set of ETFs to market that would satisfy a growing need and have a real investor impact.
“We’re seeing the sustainable investing category rapidly growing, as investors evolve how they build their portfolios, increasingly placing a greater focus on solutions that allow them to align their beliefs with their investments. The iShares Sustainable Core ETFs empower investors to achieve both outcomes, in the same simple experience they have come to know with the iShares Core ETFs.”
The indices that the ETFs currently seek to track are designed to emphasize exposure to issuers with positive ESG characteristics chosen from securities included in its respective parent index, while exhibiting risk and return characteristics similar to those of the relevant parent index for each market segment.
The current indices apply socially responsible investing screens to exclude securities of companies involved in the business of tobacco, companies involved with controversial weapons, producers and retailers of civilian firearms, as well as companies involved in very severe business controversies, in each case as determined by the index provider.
Doug Coulter, President of RBC GAM Inc, said there are a growing number of Canadians looking for incorporate ESG factors into their portfolios. “The RBC iShares strategic alliance was launched with the stated goal of bringing unparalleled choice and opportunities to Canadian ETF investors, and these new solutions reflect that commitment.”
While RBC iShares believes sustainable investment products may have historically occupied a niche category, advances in technology, along with enhancements in data tools and portfolio analysis, have allowed investors to evolve how they build sustainable portfolios.
