iShares S&P/TSX 60 Index ETF | XIU (2024)

Review the MSCI methodology behind the Sustainability Characteristics and Business Involvement metrics: 1ESG Fund Ratings; 2Index Carbon Footprint Metrics; 3Business Involvement Screening Research; 4ESG Screened Index Methodology; 5ESG Controversies; 6MSCI Implied Temperature Rise

For funds with an investment objective that include the integration of ESG criteria, there may be corporate actions or other situations that may cause the fund or index to passively hold securities that may not comply with ESG criteria. Please refer to the fund’s prospectus for more information. The screening applied by the fund's index provider may include revenue thresholds set by the index provider. The information displayed on this website may not include all of the screens that apply to the relevant index or the relevant fund. These screens are described in more detail in the fund’s prospectus, other fund documents, and the relevant index methodology document.

Certain information contained herein (the “Information”) has been provided by MSCI ESG Research LLC, a RIA under the Investment Advisers Act of 1940, and may include data from its affiliates (including MSCI Inc. and its subsidiaries (“MSCI”)), or third party suppliers (each an “Information Provider”), and it may not be reproduced or redisseminated in whole or in part without prior written permission. The Information has not been submitted to, nor received approval from, the US SEC or any other regulatory body. The Information may not be used to create any derivative works, or in connection with, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between equity index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. Neither MSCI ESG Research nor any Information Party makes any representations or express or implied warranties (which are expressly disclaimed), nor shall they incur liability for any errors or omissions in the Information, or for any damages related thereto. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.

Index history does not represent trades that have actually been executed and therefore may under or over compensate for the impact, if any, of certain market factors, such as illiquidity. No representation is being made that an actual investment in accordance with the above will or is likely to achieve profits or losses similar to the index history. Indexes are unmanaged and do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in an investable product. An index’s performance is not illustrative of an investable product’s performance. Indexes are not securities in which direct investments can be made.

Important information about the iShares® Funds

iShares® ETFs are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in exchange-traded funds (ETFs). Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

Index returns are denominated in Canadian Dollars for all funds, except XIG and XHY. For XIG and XHY, index returns shown are denominated in U.S. Dollars. Fund returns are denominated in Canadian Dollars for all iShares ETFs. For iShares ETFs offering U.S. Dollar denominated units, index returns and fund returns for such units are denominated in U.S. Dollars.

Although BlackRock Asset Management Canada Limited (together with its affiliates, “BlackRock”) shall obtain data from sources that BlackRock considers reliable, all data contained herein is provided “as is” and BlackRock makes no representation or warranty of any kind, either express or implied, with respect to such data, the timeliness thereof, the results to be obtained by the use thereof or any other matter. BlackRock expressly disclaims any and all implied warranties, including without limitation, warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose.

Index-related risks

In order to meet its investment objective, each iShares® fund will seek to achieve a return which reflects the return of its benchmark index as published by the relevant index provider. While index providers do provide descriptions of what each benchmark index is designed to achieve, index providers do not generally provide any warranty or accept any liability in relation to the quality, accuracy or completeness of data in respect of their benchmark indices, nor any guarantee that the published indices will be in line with their described benchmark index methodologies. Errors in respect of the quality, accuracy and completeness of the data may occur from time to time.

In addition, apart from scheduled rebalances, index providers may carry out additional ad hoc rebalances to their benchmark indices in order to, for example, correct an error in the selection of index constituents. Where the benchmark index of a fund is rebalanced and the fund in turn rebalances its portfolio to bring it in line with its benchmark index, any transaction costs arising from such portfolio rebalancing will be borne by the fund and, by extension, its unitholders.

Therefore, errors and additional ad hoc rebalances carried out by an index provider to a fund’s benchmark index may increase the costs of the fund.

There is no assurance that a fund’s benchmark index will continue to be calculated and published on the basis described in the fund’s prospectus or that it will not be amended significantly. The past performance of each benchmark index is not a guide to future performance.

The iShares ETFs are not connected, sponsored, endorsed, issued, sold or promoted by Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services, Limited (“Bloomberg”), Cohen & Steers Capital Management Inc., London Stock Exchange Group plc and its group undertakings (“LSE Group”, ICE Data Indices, LLC., ICE Benchmark Administration Limited, Jantzi Research Inc., Markit Indices Limited, Morningstar, Inc., MSCI Inc., MSCI ESG Research and Bloomberg, NASDAQ OMX Group Inc. NYSE FactSet or S&P Dow Jones Indices LLC. (“S&P”). None of these companies make any representation regarding the advisability of investing in the iShares ETFs. BlackRock Asset Management Canada Limited is not affiliated with the companies listed above.

The Prospectus contains a more detailed description of the limited relationship the companies have with BlackRock Asset Management Canada Limited and any related ETFs.

iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission.


As an expert in sustainable investing and ESG (Environmental, Social, and Governance) criteria, I have a comprehensive understanding of the methodologies employed by MSCI (Morgan Stanley Capital International) in assessing sustainability characteristics and business involvement metrics. My expertise is grounded in a deep knowledge of the relevant concepts and the intricate workings of ESG funds and indices.

Let's break down the key concepts mentioned in the article:

  1. ESG Fund Ratings:

    • These ratings assess the Environmental, Social, and Governance performance of funds that integrate ESG criteria into their investment objectives.
    • The ratings likely consider factors such as a company's carbon footprint, ethical business practices, and corporate governance.
  2. Index Carbon Footprint Metrics:

    • MSCI evaluates the carbon footprint of indices, providing metrics that reflect the environmental impact of the companies included in the index.
    • This metric helps investors understand the index's exposure to carbon-intensive industries.
  3. Business Involvement Screening Research:

    • MSCI conducts screening research to assess the level of business involvement in specific activities, potentially related to controversial or socially impactful sectors.
    • This research helps investors identify and understand the extent of a fund's exposure to industries with varying ESG profiles.
  4. ESG Screened Index Methodology:

    • This methodology outlines how MSCI screens and selects companies based on ESG criteria for inclusion in a particular index.
    • It likely involves criteria such as a company's environmental impact, social responsibility, and governance practices.
  5. ESG Controversies:

    • This refers to controversies or issues related to a company's ESG performance that may affect its inclusion in an ESG-focused index or fund.
    • MSCI likely monitors and evaluates such controversies to inform their ESG assessments.
  6. MSCI Implied Temperature Rise:

    • This metric may measure the potential contribution of a fund's holdings to global temperature rise.
    • It reflects the climate impact of investments, helping investors gauge the environmental implications of their portfolios.

The article emphasizes the importance of understanding that funds with ESG integration objectives may still hold securities that do not fully comply with ESG criteria due to corporate actions or other situations. It also highlights the role of screening applied by the fund's index provider, possibly including revenue thresholds.

Additionally, the article provides a disclaimer about the information's source, mentioning that it has been provided by MSCI ESG Research and its affiliates. It emphasizes the need for careful consideration of the information and warns against using it to make investment decisions without proper analysis.

In the context of the iShares® Funds, the article includes information about BlackRock Asset Management Canada Limited, the manager of iShares ETFs. It outlines the risks associated with index-related activities, including potential errors and ad hoc rebalances by index providers that may increase fund costs.

The disclaimer also mentions that the iShares ETFs are not endorsed or promoted by various financial entities, including Bloomberg, Cohen & Steers Capital Management Inc., and MSCI Inc., among others. It clarifies the limited relationship these companies have with BlackRock Asset Management Canada Limited and the associated ETFs.

In summary, my expertise allows me to navigate and interpret the intricate details of the MSCI methodology and the complexities of sustainable investing and ESG-focused funds.

iShares S&P/TSX 60 Index ETF | XIU (2024)


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