What happened
According to a recent SEC filing, Cerity Partners OCIO LLC reduced its stake in iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU +1.51%) by 151,235 shares during Q1 2026 -- an estimated $10.6 million transaction based on the quarter's average share price. At quarter-end, the remaining position was valued at $9.0 million.
What else to know
- Following the sale, PABU accounted for approximately 0.5% of Cerity Partners OCIO's 13F reportable AUM.
- Top holdings after the filing:
- NYSE: VOO: $273.6 million (16.4% of AUM)
- NYSE: XLK: $224.8 million (13.5% of AUM)
- NASDAQ: IEF: $180.3 million (10.8% of AUM)
- NYSE: BWX: $155.6 million (9.3% of AUM)
- NYSE: SCHP: $150.3 million (9.0% of AUM)
- As of May 15, 2026, PABU shares were trading at $77.15, up about 20% over the past year -- trailing the S&P 500 by roughly 4 percentage points, while also underperforming its Large Growth category benchmark by roughly 9 percentage points.
ETF overview
| Metric | Value |
|---|---|
| AUM | $2.3 billion |
| Expense ratio | 0.10% |
| Dividend yield | 0.93% |
| 1-year return (as of 5/18/26) | 19.90% |
ETF snapshot
The iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) is a passively managed ETF designed for investors seeking broad U.S. equity exposure while aligning their portfolios with climate transition goals.
- Seeks to track the MSCI USA Climate Paris Aligned Index, targeting U.S. large- and mid-cap equities consistent with the Paris Agreement's decarbonization objectives.
- Underweights companies with high carbon exposure and increases weightings in firms positioned to benefit from the shift to a low-carbon economy.
- Carries a low 0.10% expense ratio, making it a cost-efficient option for ESG-focused investors.
What this transaction means for investors
On its face, this looks like straightforward portfolio housekeeping. Cerity Partners’ top five holdings -- spanning U.S. equities, tech sector funds, and multiple flavors of Treasury bonds -- make clear this is a broadly diversified, multi-asset-type portfolio. PABU wasn’t a core position here; even before the sale, it accounted for just over 1% of the fund's AUM. Trimming PABU to a 0.5% allocation is more likely a routine rebalancing move than any kind of broad commentary on climate-focused investing.
PABU has had a solid year, gaining roughly 20% -- but it has trailed both the S&P 500 and its Large Growth benchmark by a meaningful margin. For an institutional manager keeping a close eye on performance relative to benchmarks, that kind of underperformance can be enough to justify reducing a position, especially one that didn’t appear to be (based on its smaller size) a high-conviction holding to begin with.
For retail investors curious about climate-aligned ETFs, the broader ESG and Paris-aligned space has seen growing institutional adoption in recent years, though near-term performance versus traditional indexes has been a persistent headwind. Funds like PABU offer an accessible, low-cost way to tilt a portfolio toward companies preparing for the energy transition. At a 0.10% expense ratio, the fund is reasonably priced for what it offers -- but investors should weigh that mission-alignment against the possibility of short-term relative underperformance in a market still dominated by high-growth tech names.
