ESML ETF — Holdings & Analysis

With an expense ratio of 0.17%, ESML offers exposure to small-cap U.S. equities with a focus on ESG factors. The fund's objective is to provide returns similar to a traditional small-cap index, but with a tilt towards companies demonstrating favorable ESG characteristics.

iShares ESG Aware MSCI USA Small-Cap ETF (ESML) ETF — Price, Holdings & Analysis

The iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is a $2.19 billion fund seeking to replicate the performance of a capitalization-weighted index of U.S. small-cap companies, while emphasizing those with strong environmental, social, and governance (ESG) profiles. With an expense ratio of 0.17%, ESML offers exposure to small-cap U.S. equities with a focus on ESG factors. The fund's objective is to provide returns similar to a traditional small-cap index, but with a tilt towards companies demonstrating favorable ESG characteristics.

ETF Overview

The iShares ESG Aware MSCI USA Small-Cap ETF seeks to track the investment results of an optimized index designed to produce investment results comparable to a capitalization weighted index of small-capitalization U.S. companies, while reflecting a higher allocation to those companies with favorable environmental, social and governance ("ESG") profiles (as determined by the index provider).

ESML aims to track the investment results of an optimized index that mirrors a capitalization-weighted index of U.S. small-cap companies, while giving a higher allocation to companies with strong ESG profiles. This approach allows investors to gain exposure to the small-cap market while aligning their investments with ESG principles. The fund's top holdings include SanDisk Corp Ordinary Shares (1.42%), TechnipFMC PLC (0.57%), and US Foods Holding Corp (0.56%). ESML's sector allocation is diverse, with significant exposure to Industrials (19.4%), Technology (15.6%), and Financial Services (13.9%). The fund's focus on ESG factors differentiates it from traditional small-cap ETFs, appealing to investors who prioritize socially responsible investing. ESML provides a blend of small-cap exposure and ESG considerations, making it suitable for investors seeking both financial returns and positive social impact. The fund's country exposure is primarily in the United States (95.2%).

Risk Metrics

ESML's risk profile is influenced by its focus on small-cap companies and its ESG investment strategy. The fund's beta of 1.25 indicates that it is more volatile than the overall market. While the fund's expense ratio of 0.17% is relatively low, it still represents a drag on performance. Sector concentration, particularly in Industrials (19.4%), Technology (15.6%), and Financial Services (13.9%), could expose the fund to sector-specific risks. The fund's focus on ESG factors may also lead to deviations from a traditional small-cap index, potentially impacting performance. Investors should be aware of these risks and consider their own risk tolerance before investing in ESML. Past performance does not guarantee future results.

Expense Ratio

0.17%

What does ESML hold?

Holding	Weight
SanDisk Corp Ordinary Shares (SNDK)	1.42%
TechnipFMC PLC (FTI)	0.57%
US Foods Holding Corp (USFD)	0.56%
Royal Gold Inc (RGLD)	0.46%
BlackRock Cash Funds Treasury SL Agency (XTSLA)	0.44%
Assurant Inc (AIZ)	0.43%
XPO Inc (XPO)	0.43%
Ovintiv Inc (OVV)	0.41%
Janus Henderson Group PLC (JHG)	0.41%
ATI Inc (ATI)	0.40%

How Is the Fund Allocated?

Sector	Weight
Industrials	19.4%
Technology	15.6%
Financial Services	13.9%
Healthcare	13.8%
Consumer Cyclical	11.8%
Real Estate	6.7%
Energy	5.4%
Basic Materials	4.5%
Consumer Defensive	4.0%
Utilities	2.7%
Communication Services	2.3%

Country	Weight
United States	95.2%
United Kingdom	1.6%
Bermuda	1.0%
Other	0.3%
Canada	0.3%
Ireland	0.3%
Cayman Islands	0.3%
Switzerland	0.3%
Singapore	0.1%
France	0.1%

Dividend Yield

1.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

iShares Russell 2000 ETF (IWM) (Equity) — 0.19% expense ratio
iShares MSCI Emerging Markets ETF (EEM) (Equity) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) (Equity) — 0.32% expense ratio
iShares MSCI Emerging Markets Small-Cap ETF (EEMS) (Equity) — 0.72% expense ratio
iShares FinTech Active ETF (BPAY) (Equity) — 0.66% expense ratio
iShares Blockchain and Tech ETF (IBLC) (Equity) — 0.47% expense ratio

Risk Metrics

Beta: 1.25

Questions & Answers

What is ESML and what does it track?

The iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is an exchange-traded fund that aims to mirror the investment results of an optimized index composed of small-capitalization U.S. companies.

The index is designed to reflect a higher allocation to companies with favorable environmental, social, and governance (ESG) profiles, as determined by the index provider.

What is the expense ratio for ESML?

The expense ratio for the iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is 0.17%. This means that for every $10,000 invested in the fund, investors will pay $17 in annual fees.

While this impacts overall returns, it is important to consider this relative to the potential benefits of ESG investing and small-cap exposure. The expense ratio is lower than the category average, which is around 0.44%.

What are the top holdings in ESML?

As of 2026-03-15, the top holdings in the iShares ESG Aware MSCI USA Small-Cap ETF (ESML) are SanDisk Corp Ordinary Shares (1.42%), TechnipFMC PLC (0.57%), and US Foods Holding Corp (0.56%).

Royal Gold Inc (0.46%) and BlackRock Cash Funds Treasury SL Agency (0.44%) also make up a significant portion of the fund's assets.

Is ESML a good long-term investment?

Whether ESML is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and ESG preferences. The fund offers exposure to the small-cap market with a focus on companies demonstrating strong ESG characteristics.

ESML's expense ratio of 0.17% is relatively low, which can benefit long-term returns.

How does ESML compare to similar ETFs?

ESML differentiates itself through its ESG focus within the small-cap equity space. While other small-cap ETFs may track broader market indices without ESG considerations, ESML specifically targets companies with favorable environmental, social, and governance profiles.

Its expense ratio of 0.17% is competitive within the ESG ETF category.

Does ESML pay dividends?

Yes, the iShares ESG Aware MSCI USA Small-Cap ETF (ESML) does pay dividends. As of 2026-03-15, the fund has a dividend yield of 1.00%.

This means that investors can expect to receive approximately 1.00% of their investment in the form of dividend payments annually.