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PABU - ETF AI Analysis

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PABU

iShares Paris-Aligned Climate MSCI USA ETF (PABU)

Rating:75Outperform
Price Target:
PABU, the iShares Paris-Aligned Climate MSCI USA ETF, earns a solid overall rating thanks to large positions in high-quality U.S. leaders like Microsoft, Apple, and Alphabet, which all show strong financial performance, positive earnings commentary, and promising growth in areas such as cloud, AI, and services. Additional support comes from Nvidia and Broadcom, whose AI and data center focus boosts the fund’s long-term growth profile, though several holdings—including Nvidia, Amazon, and Equinix—face risks from high valuations and some bearish or mixed technical signals. The main risk factor is the fund’s heavy reliance on a concentrated group of large U.S. tech and growth-oriented names, which can increase sensitivity to sector downturns or shifts in sentiment toward high-valuation stocks.
Positive Factors
Climate-Focused U.S. Exposure
The ETF offers broad exposure to U.S. stocks that are aligned with Paris climate goals, appealing to investors who want both market exposure and a climate-conscious tilt.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of any returns over time.
Large, Established Holdings
Its top positions are in well-known, financially significant companies, which can provide a more stable foundation for the portfolio.
Negative Factors
Recent Weak Performance
The ETF has shown weak returns over the past month, three months, and year to date, which may concern investors focused on short-term results.
Heavy Technology Concentration
A large portion of the fund is invested in technology stocks, which increases the impact of any downturn in that sector.
Underperforming Top Holdings
Several of the largest positions, including major technology names, have been lagging so far this year, weighing on the fund’s overall performance.

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

PABU Summary

PABU is an ETF that follows the MSCI USA Climate Paris Aligned Index, focusing on U.S. companies that are working to cut carbon emissions and support climate goals. It holds many large, well-known names such as Microsoft and Apple, with a big tilt toward technology stocks. Someone might invest in PABU to get broad exposure to major U.S. companies while also supporting a shift toward a lower‑carbon economy. A key risk is that it is heavily weighted in tech and U.S. stocks, so its price can rise or fall sharply with those parts of the 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 heavily tilted toward U.S. Big Tech and digital infrastructure, and that’s where the story really plays out. Nvidia, Apple, Microsoft, Alphabet, and Broadcom form the core engine, but lately this tech motor has been sputtering, with most of these names lagging after a strong run earlier in the year. Tesla and Meta aren’t helping much either, adding more volatility than lift. One bright spot is Equinix, a real estate play on data centers that’s been quietly rising, offering a steadier counterweight inside this climate-focused, U.S.-only portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia10.39%$225.80M$4.60T68.72%
76
Outperform
Apple7.35%$159.78M$3.81T28.04%
79
Outperform
Microsoft6.13%$133.33M$2.85T-0.35%
79
Outperform
Alphabet Class C4.14%$90.01M$3.88T97.69%
82
Outperform
Tesla3.53%$76.81M$1.32T38.69%
73
Outperform
Marvell3.31%$71.91M$114.82B150.99%
76
Outperform
Amazon3.22%$69.92M$2.58T38.66%
71
Outperform
Broadcom3.20%$69.58M$1.80T112.78%
76
Outperform
Eli Lilly & Co3.04%$65.99M$878.26B21.83%
72
Outperform
Equinix2.92%$63.44M$103.84B34.27%
73
Outperform

PABU Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
68.46
Positive
100DMA
70.37
Positive
200DMA
70.10
Positive
Market Momentum
MACD
0.56
Negative
RSI
70.77
Negative
STOCH
99.99
Negative
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 67.39, equal to the 50-day MA of 68.46, and equal to the 200-day MA of 70.10, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 99.99 is Negative, 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
$2.24B0.10%
75
Outperform
$7.86B0.57%
75
Outperform
$2.92B0.07%
74
Outperform
$2.34B0.08%
74
Outperform
$1.37B0.15%
74
Outperform
$1.35B0.75%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PABU
iShares Paris-Aligned Climate MSCI USA ETF
71.99
16.11
28.83%
THRO
Ishares U.S. Thematic Rotation Active Etf
USCA
Xtrackers MSCI USA Climate Action Equity ETF
USCL
iShares Climate Conscious & Transition MSCI USA ETF
LCTU
BlackRock U.S. Carbon Transition Readiness ETF
PWRD
Tcw Transform Systems 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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