The Sacramento-based California State Teachers’ Retirement System (CalSTRS) has invested in two new low-carbon transition readiness exchange-traded funds (ETF): the BlackRock U.S. Carbon Transition Readiness ETF and the BlackRock World ex U.S. Carbon Transition Readiness ETF.
The two funds began trading yesterday and are one of the largest ETF launches in history.
CalSTRS said these ETFs address market risks and opportunities associated with the global transition to a low-carbon economy while also closely tracking the performance of the broad equity market.
This investment in BlackRock’s ETFs is in line with the pension fund’s low-carbon transition work plan, which was established in May 2019. It makes progress on two goals of the plan, which are to expand low-carbon investments that meet the fund’s risk-return goals and to gain an understanding of how companies within the investment portfolio are positioned for the low-carbon transition.
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