BlackRock’s Biggest Municipal-Bond ETF to Get an ESG Counterpart

BlackRock Inc., the world’s largest exchange-traded fund issuer, is taking another step into the municipal-bond arena with the filing of a new product that factors in environmental, social and governance risks.

The iShares ESG Aware ICE-HIP Muni Bond ETF will provide investors with broad exposure to the muni market, much like the firm’s $28 billion iShares National Muni Bond ETF (ticker MUB). However, the new fund will tilt toward issuers that receive a high ESG score based on research firm HIP Investor’s metrics, a Sept. 30 regulatory filing shows. The ESG rating framework takes into consideration how issuers ...