BlackRock’s iShares ETF platform has launched a new fund that provides exposure to real estate holdings held by REITs and listed real estate companies that are leaders in energy efficiency and green certification.
The iShares Environmentally Aware Real Estate ETF (ERET), which trades on Nasdaq, seeks to track the investment results of the FTSE EPRA Nareit Developed Green Target Index.
As of Nov. 17, Prologis, Inc. (NYSE: PLD) had the highest weighting in the index at 6.27%. In second place was Equinix, Inc. (Nasdaq: EQIX) with a 5.6% weighting, and VICI Properties Inc. (NYSE: VICI) had the third highest weighting at 2.43%.
The fund’s factsheet noted that with climate costs increasing annually and buildings comprising 37% of global carbon dioxide emissions, properties with improved energy efficiency and green certification may offer benefits such as lower operating expenses and increased asset value, potentially leading to better long-term financial performance.
The fund is focusing on REITs and listed real estate companies who are demonstrated leaders in owning and operating properties that are energy efficient and hold green certifications.
A BlackRock spokesperson says its clients “have a wide range of views and goals and that’s why we offer a broad choice of investment products. ERET is one of the more than 390 different iShares ETFs we offer in the U.S. that are designed to help clients meet their investment goals and reflect their priorities.”