The iShares MSCI ACWI Low Carbon Target ETF is Not a Strong ETF Right Now

Global leaders are working hard to reduce the carbon footprint in the world, and this has allowed companies using renewable energies to power their operations to gain favor from investors. However, the ETFs in this area haven’t performed well recently.

CRBN is Underperforming Now

The iShares MSCI ACWI Low Carbon Target ETF (CRBN) has been around since 2014 and is designed to offer investors broad exposure to the World ETFs category of the market. The ETF is managed by Blackrock and currently has more than $1 billion in assets under management, making it one of the larger ETFs in the World ETFs.

Before fees and expenses, CRBN is designed to track the performance of the MSCI ACWI Low Carbon Target Index. This index is designed to address carbon emissions and potential carbon emissions from fossil fuel reserves

CRBN has underperformed in recent weeks. Over the past month, the fund has lost more than 3% of its value as the global financial markets continue to underperform. At press time, CRBN is trading at $168.77, down by 0.20% during the US trading session on Wednesday.

The fund holds some interesting stocks in its portfolio. Tech giant Apple Inc. (AAPL) accounts for about 3.64% of total assets, with Microsoft Corp (MSFT) and Amazon Com Inc. (AMZN) completing the top three.

CRBN Could Bounce Back Soon

Despite the recent price dip, CRBN could bounce back soon. Year-to-date, the ETF has added more than 15.6% to its value, making it one of the leading funds in its category. Its recent poor performance is mild, and the ETF can easily recover and rally again over the coming weeks. CRBN could target the $175 level over the coming weeks if the bulls regain control of the market.

The fact that its annual operation expense of 0.20% makes CRBN one of the least expensive products in the space is an added advantage. The ETF has a 12-month trailing dividend yield of 1.52%.

The fund is a low-risk choice in its category thanks to its beta of 0.95 and a standard deviation of 20.69%.