BlackRock launches carbon transition ETFs

BlackRock has launched two carbon transition ETFs raising over $1.5bn, the BlackRock US Carbon Transition Readiness ETF (LCTU) and the BlackRock World ex US Carbon Transition Readiness ETF (LCTD). More than $1.2bn flowed into LCTU making it the largest ETF launch of all time. Additionally, approximately $500m was invested in LCTD, making it one of the largest ETF launches in history.

“The energy transition is central to all companies’ growth. Winners and losers will emerge in every sector based on each company’s ability to adapt, innovate and pivot their strategies toward the low-carbon economy,” said Larry Fink, chairman and CEO of BlackRock. “Many of our clients share this conviction and we are helping them be at the forefront of the energy transition through next generation climate analytics and sustainable strategies. We believe that this combination will lead to better outcomes for them and society as a whole.”

Last year BlackRock launched Aladdin Climate as the first software application for investors to measure both the physical risk of climate change and the transition risk to a low-carbon economy on portfolios with climate-adjusted security valuations and risk metrics. BlackRock also expanded and strengthened its data offerings with 1,200 new sustainability metrics through partnerships with Sustainalytics, Refinitiv, Rhodium and Clarity AI.

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