ETF Evaluator: iShares Breakthrough Envirtl Sol ETF () Follow This ETF

iShares Breakthrough Envirtl Sol ETF Overview

iShares Breakthrough Envirtl Sol ETF (ETEC) is a passively managed Sector Equity Miscellaneous Sector exchange-traded fund (ETF). iShares launched the ETF in 2023.

The investment seeks to track the investment results of the Morningstar Global Emerging Green Technologies Select Index. The underlying index measures the performance of equity securities issued by U.S. and non-U.S. companies involved in breakthrough innovations and new technologies that seek to address or combat climate change, as determined by Morningstar or its affiliates. The fund generally will invest at least 90% of its assets in the component securities of the underlying index. The fund is non-diversified.

About iShares Breakthrough Envirtl Sol ETF (ETEC)

There are 4 members of the management team with an average tenure of 1.84 years: Jennifer Hsui (2023), Peter Sietsema (2025), Matt Waldron (2025) and Steven White (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI ACWI NR USD index with a weighting of 100% and Morningstar Global Em Green Tech Sel USD index with a weighting of 100%. iShares Breakthrough Envirtl Sol ETF has 64 securities in its portfolio. The top 10 holdings constitute 48.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is considered to have an ESG focus with its investment selection and management.

iShares Breakthrough Envirtl Sol ETF is part of the Equity global asset class and is within the Sector Equity ETF group. iShares Breakthrough Envirtl Sol ETF has 60.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 39.5% There is 60.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares Breakthrough Envirtl Sol ETF has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $4 million in total assets, which is below the $294 million average for the Miscellaneous Sector category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

ETEC Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares Breakthrough Envirtl Sol ETF expense ratio is average compared to funds in the Miscellaneous Sector category. iShares Breakthrough Envirtl Sol ETF has an expense ratio of 0.47%, which is 35% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares Breakthrough Envirtl Sol ETF has a portfolio turnover rate of 61%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 45% for the Miscellaneous Sector category.

Recently, in the month of July 2026, iShares Breakthrough Envirtl Sol ETF returned -14.3%, which earned it a grade of D, as the Miscellaneous Sector category had an average return of -8.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

iShares Breakthrough Envirtl Sol ETF has a trailing yield of 0.50%, which is below the 1.09% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

iShares Breakthrough Envirtl Sol ETF Grades

Year to date, the ETF has returned 5.5%, 1.2 percentage points better than the category, which translates into a grade of C. The fund has returned 25.0% over the past year (grade of C) and 0.6% over the past three years (grade of C).

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