IShares ESG Aware MSCI USA Small-Cap ETF ESML balances an environmental, social, and governance remit with the benefits of a broad, market-cap-weighted, low-turnover portfolio. It incorporates ESG considerations while keeping close tabs on tracking error relative to its parent index, the MSCI USA Small Cap Index. The fund doesn't charge a premium for being green. Its 0.17% expense ratio ranks in the Morningstar Category's cheapest decile. So while we've downgraded the fund's Process Pillar rating to Above Average from High in acknowledgement of the liquidity challenges in this segment of the market, the fund retains its Morningstar Analyst Rating of Silver.
Will ESML outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable ESML’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the ESML management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of ESML’s parent organization’s priorities and whether they’re in line with investors’ interests.