Market Overview

iShares to Roll Out Another Socially Responsible ETF (DSI, KLD)


Already setting the standard for new introductions in 2012iShares has filed plans with the Securities and Exchange Commission to possibly introduce a new socially responsible ETF, the iShares Human Rights Index Fund.

The new ETF will track those countries from the MSCI All Country World Index that are deemed to have acceptable human rights records. No ticker or expense ratio for the iShares Human Rights Index Fund was disclosed in the filing.

iShares perhaps the only ETF sponsor to find any modicum of success with socially responsible ETFs. The iShares MSCI KLD 400 Social Index Fund (NYSE: DSI) has over $166 million in assets under management while the iShares MSCI USA ESG Select Social Index Fund (NYSE: KLD) has almost $174 million in AUM. Both funds charge 0.5%.

FaithShares shuttered its socially responsible Christian denomination funds last year and socially responsible ETFs sponsored by Pax World are plagued by low AUM and thin volume.

As for the iShares Human Rights Index Fund, the ETF will track an index of that consisted of 8,905 companies as of the end of 2011. Constituent countries include Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Morocco, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Portugal, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and the United States.

So right off the bat, the inclusion of China, Egypt, Russia and South Africa in a so-called socially responsible ETF might raise a few eyebrows. Then again, that country breakdown may prove appealing due to its emerging markets exposure.

Posted-In: News Broad U.S. Equity ETFs Specialty ETFs New ETFs Emerging Market ETFs Pre-Market Outlook After-Hours Center Markets


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