“The evidence is mounting that companies that effectively manage sustainability-related issues have exhibited lower risk, that the management of material sustainability considerations has been associated with outperformance over time, and that these factors may play a role in long-term performance as well,” according to BlackRock.
SUSA holds nearly 100 stocks, almost 28% of which hail from the technology sector. Industrial and healthcare names combine for a quarter of the fund’s weight while financial services and consumer staples stocks combine for 22%.
“Companies that reduce their carbon footprints the most have historically outperformed peers in the stock market. Greater carbon efficiency may signal operational excellence. It may also help protect companies from physical and regulatory risks,” according to BlackRock.
SUSA charges 0.5% per year, or $50 on a $10,000 investment. The ETF’s three-year standard deviation is 10.51%.
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