Cerity Partners Dumps $10.6M Worth of Climate ETF -- What Investors Should Know

Andy Gould, The Motley Fool

Mon, May 18, 2026 at 11:47 AM EDT 4 min read

What happened

According to a recent SEC filing, Cerity Partners OCIO LLC reduced its stake in iShares Paris-Aligned Climate Optimized MSCI USA ETF (NASDAQ:PABU) 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

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.