Illuminate uses exchange-traded funds (ETFs) for international portfolio exposure. The strategy includes three main components:
Developed Markets - iShares Paris-Aligned Climate MSCI World ex USA ETF (PABD), covering Europe, Japan, Australia, and Canada.
Emerging Markets - Xtrackers MSCI Emerging Markets Climate Selection ETF (EMCS), covering Asia and Latin America.
Bonds - Short Duration Green Bond ETF (CCSB), with domestic and international holdings.
Why US-traded ETFs?
- Simplifies tax reporting under US regulations
- Eliminates currency conversion requirements
- Avoids foreign withholding taxes in many cases
- Provides better liquidity with standardized trading hours
- Typically offers lower transaction costs versus direct foreign securities purchases
This approach gives you diversified exposure to global markets while maintaining efficient operations.
The domestic stock allocation (typically the largest portion) consists of individual company stocks to enable proxy voting and aligns with the MSCI USA Climate Paris Aligned Benchmark Extended Select Index.
