iShares ESG MSCI EM Leaders ETF (LDEM US) - Investment Proposition

Core Viewpoint - iShares ESG MSCI EM Leaders ETF (LDEM) offers broad exposure to emerging markets, focusing on companies recognized for strong sustainability practices, aiming to balance regional diversification with an emphasis on governance and environmental management [1] Investment Strategy - The ETF employs a transparent, rules-based selection and weighting approach, favoring higher-quality balance sheets and lower controversy risk while maintaining sector diversity [1] - Periodic reconstitution of the portfolio may lead to modest turnover as constituents change over time [1] Risk/Return Characteristics - The risk/return profile typically reflects core emerging market beta, adjusted for exclusions and quality tilts, with income being incidental to total return and varying by regional dividend policies [1] Target Audience - Suitable for allocators using strategic equity models seeking emerging market exposure with defined sustainability criteria, as well as wealth managers implementing ESG frameworks across client portfolios [1] Market Conditions - The ETF may be particularly attractive when governance risk and external funding dependencies are prioritized, but it could underperform during commodity-led rebounds that favor lower-rated issuers [1] - It is important to monitor methodology capacity and concentration limits in markets with lower liquidity [1]