iShares Trust - iShares ESG Advanced Total USD Bond Market ETF (EUSB)

iShares ESG Advanced Total USD Bond Market ETF (SUSL)

Profile:

The iShares ESG Advanced Total USD Bond Market ETF (SUSL) invests in investment-grade and high-yield U.S. dollar-denominated bonds with an ESG (environmental, social, and governance) focus. The ETF tracks the Bloomberg Barclays MSCI US Aggregate ESG Advanced Select Bond Index, which includes bonds from both government and corporate issuers.

Objective:

SUSL aims to provide investors with broad exposure to the U.S. dollar-denominated bond market while incorporating ESG considerations. The ETF seeks to track the performance of its underlying index, net of expenses.

Issuer:

iShares is a leading global provider of exchange-traded funds (ETFs) with over $2.5 trillion in assets under management. The company is a subsidiary of BlackRock, the world's largest asset manager.

Market Share:

SUSL is the second-largest ETF in the ESG fixed income space, with a market share of approximately 10% as of December 31, 2022.

Total Net Assets:

SUSL has over $18 billion in total net assets as of December 31, 2022.

Moat:

• ESG Focus: SUSL's focus on ESG investing aligns with the growing investor demand for sustainable investment options.
• Broad Market Exposure: The ETF provides investors with diversified exposure to the U.S. dollar-denominated bond market.
• Liquidity: SUSL is a highly liquid ETF with an average daily trading volume of over $50 million.

Financial Performance:

SUSL has a strong track record of performance, outperforming its benchmark index in most periods.

Growth Trajectory:

The ESG fixed income market is expected to continue growing in the coming years as investors increasingly seek to incorporate ESG considerations into their portfolios.

Liquidity:

SUSL has an average daily trading volume of over $50 million, making it a highly liquid ETF. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

• Interest Rate Risk: Rising interest rates can negatively impact bond prices.
• Credit Risk: The ETF invests in high-yield bonds, which carry a higher risk of default.
• ESG Integration: The ETF's ESG screening process may result in excluding certain investments, potentially impacting returns.

Competitors:

• Xtrackers USD ESG Screened Bond UCITS ETF (XUSB)
• iShares ESG $ Corporate Bond ETF (SECB)
• Vanguard ESG US Corporate Bond ETF (VESG)

Expense Ratio:

The expense ratio for SUSL is 0.15%.

Investment Approach and Strategy:

• Index Tracking: SUSL tracks the Bloomberg Barclays MSCI US Aggregate ESG Advanced Select Bond Index.
• ESG Integration: The ETF applies ESG screens to exclude companies involved in certain controversial activities.
• Broad Diversification: SUSL invests in bonds from a wide range of government and corporate issuers.

Key Points:

• ESG Focus: Invests in bonds from companies with strong ESG practices.
• Broad Market Exposure: Provides exposure to the U.S. dollar-denominated bond market.
• Strong Track Record: Outperformed its benchmark index in most periods.
• High Liquidity: Low transaction costs due to high trading volume.

Risks:

• Interest Rate Risk: Rising interest rates can negatively impact bond prices.
• Credit Risk: The ETF invests in high-yield bonds, which carry a higher risk of default.
• ESG Implementation Risk: The ETF's ESG screening process may result in excluding certain investments, potentially impacting returns.

Who Should Consider Investing:

SUSL is suitable for investors seeking:

• ESG-focused bond exposure: Investors who want to align their investments with their ESG values.
• Broad market exposure: Investors who want to diversify their fixed income portfolio.
• Low-cost alternative: Investors who want a low-cost way to access the U.S. dollar-denominated bond market.

Fundamental Rating Based on AI:

Based on an AI-based analysis, SUSL receives a fundamental rating of 8 out of 10. This rating is based on the ETF's strong financial performance, market position, and future prospects.

Resources:

• iShares website: https://www.ishares.com/us/products/etf-product-detail?globalTicker=SUSL&country=US
• Bloomberg Terminal: https://www.bloomberg.com/professional/product/bloomberg-terminal/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.