CRBN ETF Overview: A Smart Beta Investment Approach

The iShares MSCI ACWI Low Carbon Target ETF (CRBN) offers a smart beta investment approach focusing on carbon exposure. Investors should evaluate its performance and expense ratio to determine potential stock price impacts.

Date: 01-04-2025

AI Rating: 6

CRBN ETF Performance Insights - The iShares MSCI ACWI Low Carbon Target ETF (CRBN) is an attractive option for those interested in smart beta strategies due to its focus on low carbon exposure. The ETF, sponsored by BlackRock, has amassed over $944.90 million in assets and aims to match the performance of the MSCI ACWI Low Carbon Target Index.

Its operating expenses are relatively low at 0.20%, enhancing the potential for higher net returns over the long term. The current dividend yield of 1.97% also provides income potential for investors. The ETF has underperformed slightly this year with a loss of -1.36%, though it's important to note a more favorable trajectory with an increase of approximately 8.48% over the past year. This indicates some market resilience, particularly with its beta at 0.95, denoting lower relative volatility compared to the broader market.

Top Holdings Analysis - The top holdings of CRBN reveal significant allocations to major tech companies: Apple Inc. (AAPL), Nvidia Corp (NVDA), and Microsoft Corp (MSFT), suggesting that tech performance is crucial for ETF performance. Given AAPL's 4.62% weighting, shifts in its stock price can directly affect CRBN's value.

In terms of risk metrics, the ETF’s beta of 0.95 suggests that it exhibits slightly less volatility compared to the overall market, making it a relatively safe investment within the ETF landscape.

While there are no explicit references to Earnings Per Share (EPS), Net Income, or Profit Margins in the reported text, the performance figures and expense structure provide a clearer picture of the fund's management efficiency and growth potential. Investors may be inclined towards CRBN for its growth characteristics in carbon-aware investing, but continual evaluation against other low-cost ETFs, such as the iShares ESG Aware MSCI USA ETF (ESGU) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), remains advisable.

Stocks: AAPL NVDA MSFT