iShares ESG Aware MSCI EM ETFESGE

On 28 July 2026, the iShares ESG Aware MSCI Emerging Markets ETF (ESGE) traded at $42.10, reflecting a 1.2% gain over the past week, per Nasdaq data. The fund, which tracks the MSCI Emerging Markets ESG Aware Index, holds $2.1 billion in assets and charges an expense ratio of 0.40%-a fee BlackRock defends as "reflecting the costs of ESG integration." However, critics note that 68% of the portfolio overlaps with the standard MSCI Emerging Markets Index, accessible via cheaper alternatives.

ESGE’s top holdings include Taiwan Semiconductor Manufacturing (TSMC), China’s ICBC Bank, and India’s Reliance Industries, each weighted between 1-2%. While the fund excludes companies involved in thermal coal, oil sands, and controversial weapons, it retains exposure to firms like Petrobras and Saudi Arabia’s SABIC, which have faced scrutiny over environmental and governance practices. The SEC’s EDGAR database shows no recent filings from ESGE, though BlackRock’s Q2 2026 report highlighted "enhanced ESG engagement" without disclosing specific metrics.

Liquidity remains a concern: the fund averages $20 million in daily trading volume, below the $50 million threshold analysts consider ideal for large ETFs. The ETF’s tracking difference over the past year stands at 0.72%, slightly above the industry average for emerging market funds. BlackRock attributes this to "country-specific liquidity constraints" in the underlying index. Investors seeking lower-cost ESG emerging market exposure might consider the JP Morgan Emerging Markets ESG ETF (JPEM), which charges 0.25% and has $4.3 billion in assets.