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PABU - ETF AI Analysis

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PABU

iShares Paris-Aligned Climate MSCI USA ETF (PABU)

Rating:74Outperform
Price Target:
PABU, the iShares Paris-Aligned Climate MSCI USA ETF, earns a solid overall rating thanks to its heavy exposure to high-quality tech leaders like Microsoft, Apple, Alphabet, Nvidia, and Broadcom, which all show strong financial performance and long-term growth potential in areas such as cloud computing and AI. However, holdings like Snowflake introduce some drag on the rating due to profitability and valuation challenges, and several key positions carry high valuations, creating a main risk that the fund is concentrated in expensive, growth-focused technology names that could be more volatile if expectations are not met.
Positive Factors
Strong Growth-Oriented Top Holdings
Many of the largest positions, especially in technology and healthcare, have shown strong performance this year, helping support the ETF’s overall returns.
Low Expense Ratio
The fund’s relatively low annual fee means more of the investment gains stay in investors’ pockets instead of going to costs.
Focused U.S. Exposure
Almost all assets are invested in U.S. companies, giving investors targeted exposure to the U.S. market within a climate-focused strategy.
Negative Factors
Heavy Technology Concentration
Over half of the ETF is invested in technology stocks, which increases risk if that sector experiences a downturn.
Large Positions in a Few Stocks
A small number of companies make up a big share of the portfolio, so weak performance from any of these names can significantly impact the fund.
Mixed Performance Among Top Holdings
While several major holdings have been strong, some key positions have been weak this year, which can create more ups and downs in the ETF’s returns.

PABU vs. SPDR S&P 500 ETF (SPY)

PABU Summary

PABU is the iShares Paris-Aligned Climate MSCI USA ETF, built to follow the MSCI USA Climate Paris Aligned Index. It focuses on U.S. companies that are working to cut carbon emissions and support climate goals, with a strong tilt toward technology and other modern industries. Well-known holdings include Nvidia, Apple, and Microsoft. An investor might choose PABU to seek long-term growth while supporting companies that aim to be more environmentally friendly, all in one diversified fund. A key risk is that it is heavily tilted toward tech stocks, so its price can move up and down sharply with that sector and the overall market.
How much will it cost me?The iShares Paris-Aligned Climate MSCI USA ETF (PABU) has an expense ratio of 0.10%, which means you’ll pay $1 per year for every $1,000 invested. This is lower than average because it is passively managed, tracking an index rather than relying on active stock picking.
What would affect this ETF?The iShares Paris-Aligned Climate MSCI USA ETF (PABU) could benefit from increased global focus on sustainability and climate-friendly policies, as well as growth in the technology sector, which makes up a significant portion of its holdings. However, it may face challenges from potential regulatory changes or economic downturns that impact high-growth companies like Nvidia, Tesla, and Microsoft, which are heavily weighted in the ETF. Additionally, shifts in interest rates could negatively affect sectors like real estate and financials within the portfolio.

PABU Top 10 Holdings

PABU is leaning hard into U.S. tech, with Nvidia, Microsoft, and Apple setting the tone. Nvidia and AMD have been rising over the year, giving the fund a strong AI-powered tailwind, while Marvell has recently joined the rally and added extra spark. On the flip side, Broadcom looks a bit tired and Tesla is clearly dragging, with more mixed to lagging recent performance. Alphabet and Snowflake are steadier supporting players. Overall, this is a U.S.-centric, climate-aligned ETF whose fortunes are tightly hitched to Big Tech and semiconductor names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia9.52%$240.18M$5.26T22.76%
76
Outperform
Microsoft7.57%$190.78M$3.68T-2.80%
79
Outperform
Apple7.49%$188.97M$4.85T41.95%
79
Outperform
Alphabet Class C3.83%$96.60M$4.12T38.97%
82
Outperform
Advanced Micro Devices3.66%$92.23M$842.57B225.49%
73
Outperform
Broadcom3.58%$90.22M$1.73T0.59%
76
Outperform
Tesla3.29%$82.87M$1.44T-7.70%
73
Outperform
Snowflake3.27%$82.54M$116.07B48.76%
54
Neutral
Eli Lilly & Co3.14%$79.15M$1.05T47.70%
72
Outperform
Marvell2.87%$72.25M$207.04B250.56%
76
Outperform

PABU Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
77.09
Positive
100DMA
76.46
Positive
200DMA
73.31
Positive
Market Momentum
MACD
0.09
Positive
RSI
46.64
Neutral
STOCH
16.26
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PABU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 78.05, equal to the 50-day MA of 77.09, and equal to the 200-day MA of 73.31, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 16.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PABU.

PABU Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.53B0.10%
74
Outperform
$6.77B0.57%
74
Outperform
$3.47B0.07%
74
Outperform
$2.82B0.08%
75
Outperform
$1.51B0.75%
67
Neutral
$1.23B0.15%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PABU
iShares Paris-Aligned Climate MSCI USA ETF
77.26
7.09
10.10%
THRO
Ishares U.S. Thematic Rotation Active Etf
USCA
Xtrackers MSCI USA Climate Action Equity ETF
USCL
iShares Climate Conscious & Transition MSCI USA ETF
PWRD
Tcw Transform Systems Etf
LCTU
BlackRock U.S. Carbon Transition Readiness ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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