At a glance
PABD charges 0.12% a year, above the 0.11% average of the 8 funds most like it (the 7th cheapest of 9). It has $335.8M in assets, the 9th largest of that group; it paid 3.04% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +9.4% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds. Its ten largest positions make up 14.6% of the fund, out of 420 in all.
The short version
iShares Paris-Aligned Climate MSCI World ex USA ETF (PABD) is a BlackRock index fund. It holds about 420 large and mid-sized companies in developed markets outside the US, chosen and weighted under MSCI rules meant to cut carbon exposure in line with the Paris climate agreement. Its 0.12% expense ratio is close to the 0.11% average of similar funds. That is still well above broad funds such as VEA at 0.03%.
Price history
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PABD +9.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PABD price data to Oct 27, 2026 | +7.3% | +9.4% | — | — | — | +14.9% |
- Over the year to Oct 27, 2026, PABD returned +9.4%, 9th of 9 among similar funds.
- Its worst full calendar year was 2025 (+30.1%); its best was 2025 (+30.1%).
- The deepest fall in its price history was 13.4% (Sep 26, 2024 to Apr 8, 2025), recovered by Apr 28, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +7.3% |
| 2025 | +30.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0100 | |
| 2025 | $1.7700 |
What's inside
As of Aug 31, 2026, the fund held 420 securities; the ten largest made up 14.58% of assets.
| Holding | Weight | |
|---|---|---|
| ASML Holding N.V. | 3.00% | |
| ROYAL BANK OF CANADA | 1.53% | |
| Novartis AG | 1.46% | |
| HSBC HOLDINGS PLC | 1.44% | |
| Roche Holding AG | 1.36% | |
| SCHNEIDER ELECTRIC SE | 1.31% | |
| ABB Ltd | 1.16% | |
| ASTRAZENECA PLC | 1.13% | |
| Mitsubishi UFJ Financial Group, Inc. | 1.10% | |
| THE TORONTO-DOMINION BANK | 1.09% | |
| Allianz SE | 1.04% | |
| SAP SE | 1.02% | |
| Banco Santander, S.A. | 0.94% | |
| COMMONWEALTH BANK OF AUSTRALIA | 0.85% | |
| UNICREDIT, SOCIETA PER AZIONI | 0.80% |
By country
Japan 18.28%Canada 13.86%United Kingdom 9.94%Switzerland 9.92%France 7.91%By asset type
Stocks 95.75%Other 3.74%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $6.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.02%, +0.30%, +1.67%.
How it works
PABD tracks the MSCI World ex USA Climate Paris Aligned Benchmark Extended Select Index. MSCI starts with its MSCI World ex USA Index, which covers large and mid-sized companies in 22 developed countries outside the US. It then removes tobacco companies, makers of controversial or nuclear weapons, and civilian firearms makers and sellers. It also drops companies tied to thermal coal, oil sands, many oil and gas activities and certain types of power generation. Companies in very severe ESG (environmental, social or governance) controversies or severe environmental controversies are dropped too.
A computer optimization process then sets the weights. At each twice-yearly rebalance, the index aims to have greenhouse gas intensity, meaning emissions measured against company size, at least 50% below the parent index. It also aims to cut its own intensity at least 10% a year. It tilts toward companies with "green revenue" and credible emissions targets. It keeps sectors that matter to the low-carbon transition at no less than their weight in the parent index. Sector and country weights stay within 5 percentage points of the parent's weights, and each stock's weight is capped relative to its weight in the parent index.
BlackRock runs it as a plain index fund, with no leverage or options. It doesn't try to beat the index or move to cash when markets fall. As of August 31, 2026, the top 10 holdings made up 14.6% of assets, led by ASML at 3.0%. Equity derivatives made up just 0.11%. Portfolio turnover was 18%.
What it really costs
- PABD charges 0.12% a year, versus an average of 0.11% for the similar funds below (7th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $12 in the first year and $154 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PABD | $12 | $39 | $68 | $154 |
In a retirement portfolio
It adds developed-market stocks outside the US, with a climate screen, to a portfolio that may lean heavily on US companies.
PABD spreads money across countries outside the US. As of August 31, 2026, its largest country weights were Japan (18.3%), Canada (13.9%), and the UK and Switzerland (about 9.9% each). That also means currency risk: a stronger dollar can lower returns. The fund launched January 17, 2024, so it has no record from the 2008, 2020 or 2022 sell-offs. Its only full calendar year, 2025, returned 30.1%. Its deepest drop was 13.4%, from September 26, 2024 to April 8, 2025, and it recovered by April 28, 2025. That short dip says little about a long bear market, when a retiree might have to sell shares at low prices. As of October 27, 2026, the trailing 12-month yield was 3.04%, paid twice a year. Costs are low: $154 over 10 years in the SEC's $10,000 example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting developed-market stocks outside the US, including Canada at 13.9%, with tobacco, weapons, coal and most oil and gas companies screened out.
- Holders who want an index targeting greenhouse gas intensity at least 50% below its parent's, for a 0.12% expense ratio.
- Long-term investors fine with dividends paid twice a year; the trailing yield was 3.04% as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: VEA charges 0.03% and IEFA 0.07%, versus 0.12% for PABD.
- Anyone wanting a long track record; PABD launched in January 2024 and hasn't been through a major bear market.
- Investors who want returns that track the broad market; PABD's 9.4% one-year return trailed all eight similar funds compared, as of late October 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| PABD this fund | — | 0.12% | $335.8M | +9.4% | — |
| EFA iShares MSCI EAFE ETF | 57% | 0.32% | $77.98B | +13.5% | +18.2% |
| ESGD iShares ESG Aware MSCI EAFE ETF | 54% | 0.21% | $12.21B | +11.7% | +19.8% |
| IEFA iShares Core MSCI EAFE ETF | 50% | 0.07% | $190.11B | +13.7% | +18.5% |
| SCHF Schwab International Equity ETF | 49% | 0.06% | $69.68B | +17.7% | +20.4% |
| VEA Vanguard FTSE Developed Markets ETF | 45% | 0.03% | $316.42B | +16.8% | +21.7% |
| VSGX Vanguard ESG International Stock ETF | 38% | 0.1% | $6.82B | +14.3% | +21.9% |
| VEU Vanguard FTSE All-World ex-US Index Fund | 35% | 0.04% | $95.84B | +13.4% | +20.6% |
Questions investors ask
Is PABD good for retirement?
It can serve as an international stock holding, but its record is short. PABD launched in January 2024, so it hasn't been tested in a crisis like 2008 or 2022. Its deepest drop was 13.4%, which it recovered within about a month in April 2025. It yielded 3.04% over the trailing 12 months as of October 27, 2026, paid twice a year. Its expense ratio is 0.12%. It may suit retirees who want non-US stocks with a climate screen.
PABD vs ESGD: what's the difference?
Both are iShares funds of developed-market stocks outside the US with sustainability rules, and about 54% of their holdings overlap. PABD follows stricter Paris-aligned carbon targets and excludes most fossil fuel companies. PABD costs 0.12% a year, compared with 0.21% for ESGD. ESGD is far larger, at about $12.2 billion versus $336 million for PABD. Over one year to October 27, 2026, ESGD returned 11.7% and PABD returned 9.4%.
Does PABD pay dividends?
Yes. PABD pays dividends twice a year. Over the 12 months to October 27, 2026, it paid $2.08 per share, a trailing yield of 3.04%. The dividends come from the roughly 420 non-US companies it holds, such as banks like Royal Bank of Canada and HSBC. Payouts depend on company profits and exchange rates, so the amount can change from one payment to the next.
What does Paris-aligned mean in PABD?
It means the fund's index is built to fit the Paris Agreement's goal of limiting global warming to well below 2 degrees Celsius. In practice, MSCI targets greenhouse gas intensity at least 50% below the MSCI World ex USA Index, and cuts it at least 10% each year. The index also drops coal, many oil and gas activities and oil sands. It aims to exceed the European Union's minimum standards for a Paris-Aligned Benchmark.
What are PABD's top holdings?
As of August 31, 2026, PABD's largest holding was ASML at 3.0% of assets. Next came Royal Bank of Canada, Novartis, HSBC, Roche, Schneider Electric, ABB, AstraZeneca, Mitsubishi UFJ Financial Group and Toronto-Dominion Bank, each between 1.1% and 1.5%. The top 10 made up just 14.6% of the fund across 420 holdings, so no single company dominates. Financial and industrial companies make up a large share of the index.