To The Moon

🌟🌟🌟ESG stands for Environmental, Social and Governance.  ESG is a set of standards that businesses and organisations use to access their global influence in addition to their financial performance.  $iShares ESG Screened S&P 500 ETF(XVV)$ seeks to track the in vestment results of an index composed of large capped US stocks within the S&P500 Index while applying screens for company involvement in controversies and controversial business activities.

XVV was launched in September 22 2020 as a sign of changing times.  XVV starts with the S&P500 Index and  screens out companies over a certain threshold level of involvement in tobacco, controversial weapons and involvement in fossil fuels.

Companies are evaluated based on their involvement in certain controversial business activities.  Excluded are those holding reserves of coal, oil, natural gas or shale and companies deemed non compliant with the United Nations Global Impact.  Companies are also evaluated for governance controversies such as economic crime, corruption, fraud, human rights abuses, Labour disputes, workplace safety, catastrophic accidents and environmental disasters.  Those flagged on any of these issues, may be removed from the ETF and remain ineligible for re-entry of up to 1 year.  Exclusions are reviewed at each quarterly rebalance. 

The Top 10 holdings include 6 members of the Magnificent 7 - $Microsoft(MSFT)$  $Apple(AAPL)$  $NVIDIA Corp(NVDA)$  $Amazon.com(AMZN)$  $Alphabet(GOOG)$  Meta Platforms, Berkshire Hathaway, Eli Lilly and JP Morgan.

The Top 10 holdings weightage is 35%.  Total number of holdings is 449.  The expense ratio is a low 0.08%.  Distribution Frequency is Quarterly. The current distribution yield is 1.14%.

I am a long term investor of XVV ETF and believe that sustainable investing is important. This is because sustainable investing can mitigate investment risk and support companies taking an active role on key issues such as climate change and social justice.  Moreover companies mitigating risk through good governance  and increased awareness of ESG would provide a positive impact while building long term growth. 

XVV is a low cost, diversified approach to investing with a social conscience.  The Fund Manager, BlackRock which is the largest Fund Manager in the world does the heavy lifting for me  of sifting through the best companies in the S&P500 in terms ESG and weeding out those which do not comply.

Performance wise XVV is up 1.43% on Friday and has risen 8.6% year todate.  In 2023, XVV is up 26%.  In contrast SPY ETF is up 8.18% year todate and 23.9% in 2023.  So XVV has performed slightly better than SPY in this time frame.  Since inception in 2020, XVV has jumped 55.7%.

Wall Street Analysts are bullish on XVV with a Buy rating, Target price of USD 44.78, an upside potential of 14% according to Tipranks. 

XVV is a great ETF as it provides me with a sustainable investing theme towards companies that prioritise ESG and create positive changes for a future that is cleaner, greener and healthier. 

@Daily_Discussion  @TigerStars  @MillionaireTiger  @Tiger_comments  @CaptainTiger