ESML ETF — Holdings & Analysis

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.

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%.

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.

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.

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.

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.