ZACKS·2026-01-27 12:21Core Insights - The iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) is a smart beta ETF that debuted on April 8, 2022, providing broad exposure to the Style Box - All Cap Blend category [1] Fund Overview - PABU is managed by Blackrock and has accumulated over $2.26 billion in assets, making it one of the larger ETFs in its category [5] - The fund aims to match the performance of the MSCI USA Climate Paris Aligned Benchmark Extended Select Index, which includes U.S. large and mid-cap stocks aligned with the Paris Agreement's decarbonization goals [6] Cost Structure - PABU has an annual operating expense ratio of 0.10%, positioning it as one of the least expensive options in the ETF space [7] - The fund's 12-month trailing dividend yield is 0.91% [7] Sector Exposure and Holdings - The largest sector allocation for PABU is Information Technology, comprising approximately 42.3% of the portfolio, followed by Financials and Real Estate [8] - Nvidia Corp (NVDA) is the top holding at about 9.67% of total assets, with Microsoft Corp (MSFT) and Apple Inc (AAPL) also among the top three [9] - The top 10 holdings represent about 45.85% of total assets under management [9] Performance Metrics - As of January 27, 2026, PABU has experienced a year-to-date loss of approximately -0.79% but is up about 9.33% over the past year [10] - The fund has traded between $53.19 and $74.50 in the last 52 weeks, with a beta of 1.05 and a standard deviation of 15.97% over the trailing three-year period [10] Alternatives - PABU is a viable option for investors looking to outperform the Style Box - All Cap Blend segment, but there are other ETFs available, such as Vanguard ESG U.S. Stock ETF (ESGV) and iShares ESG Aware MSCI USA ETF (ESGU) [11][12] - ESGV has $12.02 billion in assets and an expense ratio of 0.09%, while ESGU has $15.98 billion in assets with a 0.15% expense ratio [12]