ESG-screened DSI ETF posts a strong run while skipping Meta, despite holding Alphabet and Intel

An ESG-screened exchange-traded fund is showing how “what you own” under sustainability rules can diverge sharply from mainstream megacap benchmarks. The iShares MSCI KLD 400 Social ETF, traded as DSI, has gained roughly 22.29% over the year ending in the period cited by a recent market report, even as it sidesteps one of the most closely watched mega-cap names in tech.

The report says DSI holds shares of Google parent Alphabet and also owns Intel. In the same breath, it says the fund does not hold Meta. The implication is not that Meta has been excluded because of a single headline issue in the cited period, but that ESG scoring and screening methodologies can lead funds to include some large-cap names while excluding others, even when those companies are peers in the broader tech sector.

DSI’s results underscore a common ETF question for investors and fund analysts alike: do ESG screens reduce upside by cutting exposure to heavily traded, high-profile stocks, or can they improve selection by steering portfolios toward companies that pass certain sustainability filters? In this case, the cited one-year performance figure suggests the fund did not appear to suffer simply from not owning Meta, at least over the specific window referenced in the article.

The fund’s strategy also illustrates the mechanics of ESG-based indexing. Rather than tracking a conventional cap-weighted market index, an ESG approach typically starts with a broad equity universe and then applies exclusions or tilts tied to environmental, social, and governance criteria. That process can matter most at the top of market capitalizations, where small differences in screening outcomes can change the composition of a portfolio meaningfully.

Alphabet, which trades as GOOGL in the U.S., is one of the companies the report says is included in DSI. Alphabet is widely viewed as central to the modern internet advertising and cloud stack, and its inclusion is a reminder that ESG approaches do not necessarily mean “less exposure to big tech.” Instead, it can mean that only the subset of companies passing the ESG filters remain in the investable universe used by the index behind the ETF.

Intel, another holding named in the report, adds a separate angle. The company represents the hardware and semiconductor segment, an industry where ESG frameworks often intersect with themes such as supply chain practices, energy use, and governance. Intel’s presence in DSI suggests the index is willing to include traditional industrial tech and chipmakers alongside software and platform businesses when they meet the screening thresholds.

What remains unclear from the cited market report is the exact screening rationale for Meta’s absence, and the report does not provide the ETF’s full holdings list, weights, or the underlying index provider’s methodology in the excerpt available through The announcement. It also does not disclose whether Meta was excluded due to a specific category within ESG scoring or a broader compliance or controversy filter. Without that detail, readers can only infer that DSI’s ESG process produces a different top-constituent mix than a standard megacap-oriented basket.

Going forward, investors who track ESG ETFs may want to watch whether changes in ESG ratings, corporate policies, or index rebalances alter DSI’s exposure to large platforms. Because the largest names can drive performance in both directions, any future inclusion or exclusion of companies like Meta, Alphabet, or Intel could quickly affect the fund’s factor exposure and relative returns. The next key datapoints will likely be updated holdings disclosures and the ETF’s continued performance versus broader tech benchmarks over subsequent periods.