Cerity Partners Dumps $10.6M Worth of Climate ETF -- What Investors Should Know
Quick Take
Cerity Partners sold $10.6M in a climate ETF, signaling investor caution.
Key Points
- Cerity's move reflects changing market sentiments.
- Investors should assess climate ETF risks.
- Market volatility may impact future investments.
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~2 min readAndy Gould, The Motley Fool
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
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Following the sale, PABU accounted for approximately 0.5% of Cerity Partners OCIO's 13F reportable AUM.
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Top holdings after the filing:
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NYSE: VOO: $273.6 million (16.4% of AUM)
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NYSE: XLK: $224.8 million (13.5% of AUM)
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NASDAQ: IEF: $180.3 million (10.8% of AUM)
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NYSE: BWX: $155.6 million (9.3% of AUM)
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NYSE: SCHP: $150.3 million (9.0% of AUM)
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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.
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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.
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Underweights companies with high carbon exposure and increases weightings in firms positioned to benefit from the shift to a low-carbon economy.
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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.
— Originally published at finance.yahoo.com
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