Morningstar - Q1 2021 - 46

iShares
CompanyMSCI ACWI Low Carbon Target ETF CRBN

567.0
($Mil)

iShares ESG
MSCI
USA Leaders
ETF SUSL
Vanguard
ESG
US Stock
ETF ESGV
Strategies

2,697.4
2,624.6

18
53

iShares
ESG
Aware
MSCI
USA
ETF ESGU
Vanguard
FTSE
Social
Index
VFTNX

12,708.7
10,065.4

35
45

BlackRock
Advantage
USETF
Eq DSI
BIRKX
iShares MSCI
KLD 400 ESG
Social

164.4
2,488.1

30
19

14.6
567.0

10
39

Riverbridge
Leaders
iShares
MSCIEco
ACWI
Low RIVEX
Carbon Target ETF CRBN
EXHIBIT 3

13

39 Support
Votes
11

19

9

18

3

16

0

13

5
10
15 20
iShares
ESGSupport
MSCI USAAside
Leadersfrom
ETF SUSL
2,697.4
18 0%
Passive
Calvert, the largest
sustainable
index funds11have the

iShares
ESGsupport
Aware MSCI
ESGU
weakest
forUSA
ESGETFresolutions.

12,708.7

BlackRock Advantage ESG US Eq BIRKX

Fund164.4
Size
($Mil)

Company

Riverbridge Eco Leaders RIVEX
Calvert US Large Cap Core Rspnb Idx CSXAX
Northern Global Sustainability Index NSRKX
Calvert US Large Cap Value Rspnb Idx CFJIX
Green
Century Equity GCEUX
Company

14.6
3,354.5
968.9
897.6
Fund Size
406.4
($Mil)

9

35
No. 30
of
3
Votes Support

10
41
19

0
0%

5

10

15

100
20
100
100

22
No. of
18 Support
Votes

100

Global
Conscious
Companies
ETFIdx
KRMA
CalvertXUS
Large Cap
Core Rspnb
CSXAX

403.5
3,354.5

21
41

100

Praxis Growth
Index
MGNDX Index NSRKX
Northern
Global
Sustainability

386.3
968.9

29
19

100

Fidelity US
U.SLarge
. Sustainability
FITLX
Calvert
Cap ValueIndex
Rspnb
Idx CFJIX

568.2
897.6

18
22

89100

Nuveen
ESG Large-Cap
Growth ETF NULG
Green Century
Equity GCEUX

396.6
406.4

10
18

Fuel Rsrv Free
ETF SPYX
SPDR
500 FossilCompanies
GlobalS&P
X Conscious
ETF KRMA

785.7
403.5

52
21

2,624.6
386.3

53
29

19

10,065.4
568.2

45
18

18

2,488.1
396.6

19
10

16

567.0
785.7

39
52

13

iShares ESG
MSCI
USA Leaders
ETF SUSL
Vanguard
ESG
US Stock
ETF ESGV

2,697.4
2,624.6

18
53

11 19

iShares ESG
Aware
MSCI
USA
ETF ESGU
Vanguard
FTSE
Social
Index
VFTNX

12,708.7
10,065.4

35
45

9 18

Vanguard
ESG Index
US Stock
ETF ESGV
Praxis
Growth
MGNDX
Vanguard
Social IndexIndex
VFTNX
Fidelity
U.SFTSE
. Sustainability
FITLX
iShares
KLD 400 Social
ETFETF
DSINULG
Nuveen MSCI
ESG Large-Cap
Growth
iShares
MSCI
Target
ETF CRBN
FossilLow
FuelCarbon
Rsrv Free
ETF SPYX
SPDR
S&P
500ACWI

50

100

44

100
100
89

50
44

2,488.1

19 0%16

Company

Fund
Size
567.0
($Mil)

No. 39
of
13
Votes Support

American
Company Century Sustainable Equity AFDGX

Fund Size
3,030.0
($Mil)

No. of
20 Support
Votes

Putnam Sustainable
Leaders
Parnassus
Core Equity
PRBLXPSLGX

5,751.5
22,116.8

11
10

Choice
TICHXIdx CSXAX
TIAA-CREF
Calvert
US Social
Large Cap
CoreEqRspnb

6,002.6
3,354.5

25
41

DFA
US Sustainability
Pax Large
Cap PXLIX Core 1 DFSIX

3,669.6
3,354.5

44
10

Vanguard
ESG US Stock
ETF ESGV
American Century
Sustainable
Equity AFDGX

2,624.6
3,030.0

53
20

19

65

VanguardSustainable
FTSE SocialLeaders
Index VFTNX
Putnam
PSLGX

10,065.4
5,751.5

45
11

18

64

iShares
MSCI
KLDChoice
400 Social
ETF DSI
Social
Eq TICHX
TIAA-CREF

2,488.1
6,002.6

19
25

16

iShares
ESG MSCI USACore
Leaders
ETF SUSL
1 DFSIX
DFA
US Sustainability

2,697.4
3,669.6

18
44

11

iShares
ESG
Aware
MSCIETF
USA
ETF ESGU
Vanguard
ESG
US Stock
ESGV

12,708.7
2,624.6

35
53

9 19

Vanguard FTSE Social Index VFTNX

10,065.4

45 0%18

Note: Includes sustainable funds voting on at least 10 key resolutions.
iShares
MSCI KLD 400 Social ETF DSI
Source: Morningstar. Data as of 11/30/2020.

iShares MSCI ACWI Low Carbon Target ETF CRBN

25

50

75 100

iShares
2,697.4
18 11
EXHIBIT 4 ESG MSCI USA Leaders ETF SUSL
100
22,116.8
Parnassus Core Equity PRBLX
10
SizableESG
Influence
Support
ESG resolutions
among the35largest
sustainable funds,
iShares
Aware MSCI
USA ETF for
ESGU
12,708.7
9
100
3,354.5
Calvert US Large Cap Core Rspnb Idx CSXAX
41
which have the greatest influence, was mixed.
0%
25
50
75 100
100
3,354.5
Pax Large Cap PXLIX
10

60
34

2,488.1

19

iShares ESG MSCI USA Leaders ETF SUSL

2,697.4

18

11

iShares ESG Aware MSCI USA ETF ESGU

12,708.7

35

9

46

Morningstar Q1 2021

65
64

iShares MSCI KLD 400 Social ETF DSI

Note: Includes sustainable funds voting on at least 10 key resolutions.
Source: Morningstar. Data as of 11/30/2020.

very different when it comes to how they
cast their votes on ESG issues. The 15 largest index
funds included in our analysis range from 9%
support to 100% support of key resolutions voted.
The largest sustainable index fund, iShares
ESG Aware MSCI USA ETF, supported only three of
the 35 key ESG resolutions it voted ( EXHIBIT 3 ).

100
100
100

60
34
25

50

75 100

16

0%

25

50

75 100

As investors put more money into sustainable
investing strategies, the collective influence
of these strategies, via their proxy voting, also
grows. Because of their size, larger funds
have greater influence on any particular vote than
do smaller funds. We found, however, that
overall support for key ESG resolutions among the
largest sustainable funds was mixed ( EXHIBIT 4 ).
Across the dozen sustainable funds with more
than $1 billion in assets, average support for
the key resolutions was only 50%. Only three funds
exhibited 100% support, and six supported
more than half the resolutions voted. The large
funds offered by BlackRock, Dimensional,
and Vanguard voted in favor of key resolutions
only one third of the time or less.
Fund Parent Determinant
EXHIB IT 5 compares the largest sustainable funds'
support for key resolutions with that of their
parent asset manager, derived by aggregating the
key votes of all funds advised by the parent firm.

For most asset managers, voting is fairly consistent
across the funds they advise. That means
for asset managers committed to sustainable
investing, such as Calvert Research and
Management, Parnassus Investments, and Impax
Asset Management, all of their funds voted in
favor of all key ESG resolutions.
For other asset managers that advise a limited
number of sustainable funds relative to
their overall lineup, we observe lower support-
an indication that the overall voting policy of these
asset managers is less supportive of key ESG
resolutions. This explains much of the variation
in support among sustainable funds.
The votes cast by sustainable funds of only two
of the nine asset managers shown in EXHIBIT 5
differ notably from those of their parent,
American Century and Dimensional. In each case,
Morningstar - Q1 2021

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