EFIV vs PABU

EFIVAState Street SPDR S&P 500 ESG ETF

PABUBiShares Paris-Aligned Climate Optimized MSCI USA ETF

In short

EFIV A screened S&P 500 that still looks like one. EFIV trims to about 300 names on ESG criteria but holds industry-group weights close to the parent index, for 0.10% a year.

PABU A Paris climate mandate at plain index-fund pricing. PABU follows an MSCI benchmark that pushes US large and mid caps onto a decarbonization path, landing on roughly 90 stocks for 0.10% a year.

Stated mandate

EFIV The Fund seeks to track an index of securities selected using environmental, social, and governance sustainability criteria while retaining industry-group weights broadly similar to the S&P 500 Index.

PABU The fund tracks the MSCI USA Climate Paris Aligned Benchmark Extended Select Index, which is composed of U.S. large- and mid-capitalization stocks selected and weighted to follow a decarbonization trajectory, reduce climate-related transition and physical risks, and increase exposure to companies positioned for the low-carbon transition.

Why people hold it

• EFIV Charges 0.10% a year, well under the 0.25% typical of its values-screened peer group.
• Keeps industry-group weights broadly similar to the S&P 500, so the screen changes which names you own more than which sectors.
• Tracks its declared index very tightly, one of the cleaner implementations in its cohort.
• Straightforward 1940 Act index fund from SPDR, running since 2020, distributing quarterly.

• PABU 0.10% a year, half the 0.20% median for its US equity peer group, and level with the cheapest broad-beta names in that group like GUSA.
• The climate work is written into the index, not left to a manager: MSCI selects and weights names to follow a decarbonization trajectory and cut transition and physical climate risk.ishares.com
• Live since 2022, run on the iShares shelf, and now a multi-billion-dollar fund. Among the stronger mandate implementations in its peer group.
• Quarterly distributions and a straightforward index structure, so there is no derivatives layer or options overlay to unpack.

Worth knowing

• EFIV About 300 stocks, not 500. The screens remove names, so results can diverge from the headline S&P 500.
• Cheaper shelf-mates exist: XVV at 0.08% and ESGV at 0.09% undercut it on fee.
• Mid-size asset base and moderate trading volume, which can mean wider spreads than the mega-cap index giants.

• PABU Roughly 90 stocks, not the whole market. Results can diverge from a standard US large-cap fund in either direction.
• Thinly traded next to broad-beta peers such as ILCB, so spreads can widen and limit orders matter more than the expense ratio suggests.
• The decarbonization rules reshape sector and stock weights versus a market-cap MSCI USA portfolio. That tilt is the point, not a side effect.

Full EFIV profile⁠

Full PABU profile⁠