iShares Paris-Aligned Climate MSCI USA ETF

iShares Paris-Aligned Climate MSCI USA ETF (PABU) is a BlackRock index fund that tracks a version of the MSCI USA Index. That version drops coal and many oil and gas companies and reweights the rest to cut carbon emissions. It charges 0.10% a year, close to the 0.09% average of similar funds. As of August 31, 2026, it held 90 stocks, with 51% in technology. It trailed most similar funds over one and three years through October 27, 2026.

• Over the year to Oct 27, 2026, PABU returned +8.6%, 8th of 9 among similar funds.
• Its worst full calendar year was 2025 (+13.1%); its best was 2023 (+29.5%).
• The deepest fall in its price history was 24.6% (Mar 29, 2022 to Oct 14, 2022), recovered by Dec 8, 2023.

As of Aug 31, 2026, the fund held 90 securities; the ten largest made up 47.54% of assets.

By sector

• Over the three months to Aug 31, 2026, investors withdrew a net $84.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -3.54%, -0.87%, +4.22%.

PABU, a BlackRock iShares fund, tracks the MSCI USA Climate Paris Aligned Benchmark Extended Select Index. The index is built to exceed EU minimum standards for a “Paris-Aligned Benchmark.” MSCI starts with the MSCI USA Index of large and mid-sized US companies. It excludes companies in tobacco, controversial or nuclear weapons, civilian firearms, thermal coal, oil sands and many oil and gas activities. It also drops firms facing very severe ESG (environmental, social and governance) controversies, or severe environmental ones.

A computer optimization then sets each stock's weight, balancing climate goals against staying close to the MSCI USA Index. At each twice-yearly rebalancing, it targets greenhouse gas intensity (emissions relative to company size) at least 50% below that index's, plus a cut of at least 10% a year in the index's own intensity. It also favors companies with “green revenue” and credible emissions targets, and limits exposure to extreme-weather risk.

BlackRock uses representative sampling, holding a set of stocks that together resembles the index rather than every member. It does not try to beat the index or move to cash in downturns. As of August 31, 2026, the fund held about 90 stocks. The top 10 made up about 48% of assets, led by NVIDIA (9.5%), Microsoft (7.6%) and Apple (7.0%), and roughly half was in technology.

• PABU charges 0.1% a year, versus an average of 0.09% for the similar funds below (6th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $10 in the first year and $128 over 10 years (assuming a 5% annual return).

It tracks a climate-screened version of a broad US large- and mid-cap index at low cost, but its heavy tilt toward technology makes it less diversified than a total-market fund.

PABU could anchor the US stock portion of a portfolio for investors who want climate screens. It costs 0.10% a year. In the SEC's standard example, that comes to $128 over 10 years on $10,000. Its track record is short. It launched on February 8, 2022, so it has no record from 2008 or 2020 and missed the start of the 2022 bear market. Its deepest drop was 24.6%, from March 29 to October 14, 2022. It got back to its earlier high on December 8, 2023, 13.8 months after the low. Every full calendar year from 2023 to 2025 was positive. The weakest was 2025, at 13.1%.

About 51% of the fund is in technology. Its one-year beta was 1.11 as of October 27, 2026, which means it moved a bit more than the market. A tech slump could force someone drawing income to sell at a loss. The 0.93% yield, paid quarterly, adds little income. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.