PABU: ISHARES PARIS-ALIGNED CLIMATE OPTIMIZED MSCI USA ETF
What this ETF is trying to do
The ISHARES PARIS-ALIGNED CLIMATE OPTIMIZED MSCI USA ETF (PABU) is an exchange-traded fund designed to follow specific climate-related goals. It invests in companies within the U.S. market that align with Paris Agreement climate objectives. This ETF holds a variety of stocks, including large technology and healthcare companies.
What the numbers show
The data shows that PABU has experienced growth in both its share price and its total return.
• Year-to-Date (YTD): The price return is approximately 10.36%, while the total return is approximately 11.09%.
• One-Year: The price return is approximately 11.17%, and the total return is approximately 12.29%.
• Three-Year: The price return is approximately 69.69%, and the total return is approximately 74.88%.
It is important to understand the difference between these two numbers. The price return only measures how much the share price itself has moved. The total return includes both the price movement and the value of any distributions (cash payments) received.
Based on an estimated price from roughly one year ago of $72.31, the current price is $80.39.
Top Holdings:
The following are some of the largest companies held by this ETF (note that this is a partial list):
• NVIDIA CORP: 10.23%
• MICROSOFT CORP: 7.58%
• APPLE INC: 7.43%
• TESLA INC: 4.16%
• AMAZON.COM INC: 3.70%
• ALPHABET INC CLASS C: 3.59%
Income and distribution explanation
PABU provides cash distributions to investors. The current distribution yield is approximately 0.92%. This means the annual cash payments represent about 0.92% of the current share price. Over the last 12 months, there were 4 distributions, and they are usually paid out on a quarterly basis.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing.
For PABU, the erosion-risk score is 100, which is labeled as "No price erosion detected." The erosion severity is listed as "good," and there is no severe erosion-risk flag. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
Pros
• Positive Returns: The fund has shown positive price and total returns over the one-year and three-year periods.
• Low Erosion Risk: The data indicates no detected price erosion.
Cons
• Lower Yield: Compared to some other types of funds, the distribution yield of 0.92% is relatively low.
Beginner takeaway
PABU is an ETF focused on climate-aligned companies in the USA. It has shown growth in both share price and total return over the last three years. While it pays regular quarterly distributions, the yield is modest at under 1%. Always remember that price returns and total returns are different; total return is the more complete picture of how much value was created.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 10.23% |
| 2 | MICROSOFT CORP | MSFT | 7.58% |
| 3 | APPLE INC | AAPL | 7.43% |
| 4 | TESLA INC | TSLA | 4.16% |
| 5 | AMAZON.COM INC | AMZN | 3.70% |
| 6 | ALPHABET INC CLASS C | GOOG | 3.59% |
| 7 | ELI LILLY AND CO | LLY | 3.20% |
| 8 | BROADCOM INC | AVGO | 2.82% |
| 9 | META PLATFORMS INC CLASS A | META | 2.38% |
| 10 | INTERNATIONAL BUSINESS MACHINES CORP | IBM | 1.82% |