Launched on 12/08/2014, the iShares MSCI ACWI Low Carbon Target ETF (CRBN Quick QuoteCRBN - Free Report) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is sponsored by Blackrock. It has amassed assets over $1.05 billion, making it one of the larger ETFs in the World ETFs. CRBN, before fees and expenses, seeks to match the performance of the MSCI ACWI Low Carbon Target Index.

The MSCI ACWI Low Carbon Target Index is designed to address two dimensions of carbon exposure ? carbon emissions and potential carbon emissions from fossil fuel reserves.

Cost & Other Expenses

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for CRBN are 0.20%, which makes it one of the least expensive products in the space.

It's 12-month trailing dividend yield comes in at 1.73%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 4.69% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

CRBN's top 10 holdings account for about 24.44% of its total assets under management.

Performance and Risk

Year-to-date, the iShares MSCI ACWI Low Carbon Target ETF has added about 19.54% so far, and is up roughly 19.87% over the last 12 months (as of 10/09/2025). CRBN has traded between $170.20 $229.72 in this past 52-week period.

CRBN has a beta of 0.94 and standard deviation of 14.75% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 1012 holdings, it effectively diversifies company-specific risk .

Alternatives

iShares MSCI ACWI Low Carbon Target ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF has $11.66 billion in assets, iShares ESG Aware MSCI USA ETF has $15.08 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs

Bottom Line

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