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ESML ETF — 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.

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%

Top Holdings

Sector Allocation

  • 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%
  • 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%
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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. ESML provides investors with exposure to the small-cap market while incorporating ESG considerations into the investment process. The fund's objective is to offer returns similar to a traditional small-cap index, but with a focus on companies demonstrating strong ESG characteristics.

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. These holdings reflect the fund's focus on small-cap companies with favorable ESG profiles. The diversification across various sectors contributes to the fund's overall risk-adjusted return.

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. However, the may be worth researching fund's beta of 1.25, which indicates higher volatility compared to the overall market. Past performance does not guarantee future results, and investors should conduct their own research before making any investment decisions.

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. With AUM of $2.19 billion, ESML is a sizable fund, indicating investor interest in its strategy. When comparing ESML to similar ETFs, their may be worth researching own ESG preferences and investment goals to determine the most suitable option.

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. The dividend yield may fluctuate over time depending on the performance of the underlying holdings and the fund's distribution policy. These dividends can provide a source of income for investors.