ISHS MSCI USA CTA UCITS ETF USD (DIST)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 20bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 13 Jun 2024 |
| Ticker: UCTD |
| ISIN: IE000YG82CF0 |
This investment vehicle offers exposure to a portfolio of U.S. large- and mid-capitalisation companies that align with the responsible investment principles of the U.S. Conference of Catholic Bishops (USCCB). The underlying index employs a specific screening methodology to exclude firms with significant business involvement in activities deemed inconsistent with Catholic values. These exclusions cover areas such as abortion, contraception, controversial weapons, civilian firearms, thermal coal, and adult entertainment, ensuring the portfolio is constructed with a clear ethical framework.
Beyond the values-based exclusions, the fund's strategy also incorporates a positive screening element. From the remaining universe of eligible companies, the index selects those exhibiting a superior environmental, social, and governance (ESG) profile relative to their sector peers. This dual-screening process aims to create a portfolio that not only avoids specific ethical conflicts but also favors companies demonstrating strong corporate responsibility and sustainability practices. The fund uses a physical replication method, meaning it directly owns the shares of the constituent companies, providing direct exposure to their performance.
This product is specifically tailored for investors seeking to integrate their Catholic faith into their investment decisions without forgoing broad exposure to the U.S. equity market. It can act as a core holding within a diversified portfolio for individuals and institutions that prioritize values-based investing alongside the potential for long-term capital appreciation. The transparent, rules-based approach provides a clear and straightforward solution for aligning financial goals with deeply held ethical convictions, while the semi-annual distribution schedule may also appeal to those seeking periodic income.
