ETEC vs KLMT

ETECCiShares Breakthrough Environmental Solutions ETF

KLMTAInvesco MSCI Global Climate 500 ETF

In short

ETEC iShares' bet on the next wave of green tech rather than today's incumbents: roughly 50 global names across eight environmental themes, from water to sustainable farming, priced under the typical global thematic fund.

KLMT A climate fund that behaves like a core global index fund: roughly 500 developed and emerging market stocks, full replication, and a 0.10% fee that undercuts most of the thematic aisle.

Stated mandate

ETEC Seeks to track an index of global companies developing breakthrough environmental technologies across energy efficiency, green buildings, green transportation, pollution prevention, renewable energy, water, resource efficiency, and sustainable agriculture.

KLMT The Fund seeks to track the investment results of the MSCI ACWI Select Climate 500 Index before fees and expenses, using full replication of the index.

Why people hold it

• ETEC At 0.47% a year, it costs less than the median fund in its global thematic peer group.
• Eight environmental themes in one index (renewable energy, water, green buildings, green transport, pollution prevention, efficiency, resource efficiency, sustainable agriculture), so it isn't a one-technology bet.ishares.com
• Plain plumbing: a passive 1940 Act index fund from iShares tracking a Morningstar green-technology index. No leverage, no derivatives overlay.

• KLMT Costs 0.10% a year, a fraction of the typical global thematic fund and cheaper than the other top-rated climate names in its group, including LCTD and IQSZ.
• Holds about 500 names across developed and emerging markets, so it reads like a broad global equity sleeve with a climate screen rather than a narrow theme bet.invesco.com
• Buys the MSCI ACWI Select Climate 500 Index outright instead of sampling it, and has stayed tight to that index. One of the cleaner implementations in its peer group.invesco.com
• Pays out quarterly, the standard rhythm for a broad global stock index fund.

Worth knowing

• ETEC Launched in 2023, still a small and thinly traded fund, so spreads can run wider and fills less predictable than in heavily traded ETFs.
• About 50 stocks betting on emerging technologies makes for concentrated exposure. Individual names carry real weight in the portfolio.
• Distributions land once or twice a year. Income is not what this mandate is built around.

• KLMT Thinly traded for its size. Limit orders and a glance at the spread matter more here than with a mega-cap index fund.
• Launched in 2024, so the live track record is short and there is not yet a full-cycle history to judge it on.
• The climate screens reshape the global benchmark, so weights and sector mix will drift from a plain vanilla all-country index.invesco.com

Full ETEC profile⁠

Full KLMT profile⁠