BlackRock’s SRI ETF range will undergo several methodology changes in a bid to make the sector composition more tightly aligned with the parent index.
The seven-strong range – which includes the $10bn iShares MSCI World SRI UCITS ETF (SUSW) and the $7bn iShares MSCI USA SRI UCITS ETF (SUAS) – will see the weight of each issuer capped at the same weight in the parent index, with scope to go 3% above this weighting. The maximum issuer weight is capped at 18%.
In addition, sector weights must follow a maximum fluctuation of 1% from the parent index’s weight.
A spokesperson from BlackRock said: “The methodology changes are designed to…reduce sector deviation versus the parent index whilst maintaining the overall sustainable characteristics of the methodology.
“Additionally, enhancements to the security selection process make sure the highest sustainable performers are always…
