iShares ESG Advanced High Yield Corporate Bond ETF (HYXF)HYXF

ETF Summary: iShares ESG Advanced High Yield Corporate Bond ETF (SUPR)

Profile:

SUPR tracks the ICE BofA US High Yield Constrained Index, investing in USD-denominated high-yield corporate bonds from companies that demonstrate strong environmental, social, and governance (ESG) practices. The fund offers exposure to a diversified portfolio of below-investment-grade bonds, focusing on industries like energy, consumer discretionary, financials, and industrials.

Objective:

SUPR aims to provide investors with high current income while promoting sustainable and responsible investing through its ESG focus. The fund seeks to achieve this objective by investing in a portfolio of high-yield corporate bonds screened based on ESG criteria.

Issuer:

iShares is a global leader in exchange-traded funds (ETFs) with over $2.89 trillion in assets under management (as of August 31, 2023). iShares is a subsidiary of BlackRock, the world's largest asset manager.

Issuer Reputation & Reliability:

iShares has a strong reputation for providing investors with innovative and reliable ETF products. BlackRock is also a reputable financial institution with a long track record of success.

Management:

iShares utilizes a team of experienced portfolio managers and analysts to select and manage its ETF portfolios. The team has a deep understanding of the fixed income markets and ESG investing principles.

Market Share:

SUPR has a relatively small market share within the High Yield Corporate Bond ETF category. However, iShares is the leading provider of ESG-focused ETFs, with a significant market share in the broader ESG ETF market.

Total Net Assets:

SUPR's total net assets are approximately $201.25 million (as of October 26, 2023).

Moat:

• ESG Focus: SUPR's ESG screening process differentiates it from traditional high-yield bond ETFs, attracting investors seeking sustainable investment options.
• iShares Brand Recognition: iShares is a well-established ETF provider with a strong reputation, offering investors confidence in the fund's management and execution.

Financial Performance:

SUPR has delivered competitive returns since its inception in 2019. However, it's essential to note that past performance doesn't guarantee future results.

Benchmark Comparison:

SUPR has generally outperformed its benchmark index, the ICE BofA US High Yield Constrained Index, over various timeframes.

Growth Trajectory:

The growth of the ESG investing market and the increasing demand for high-yield income solutions suggest potential for continued growth for SUPR.

Liquidity:

SUPR has a moderate average daily trading volume, indicating sufficient liquidity for most investors.

Bid-Ask Spread:

The bid-ask spread for SUPR is relatively tight, implying low transaction costs.

Market Dynamics:

Factors influencing SUPR include the overall economic environment, interest rate movements, and the performance of the high-yield bond market.

Top Competitors:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG) - 38.24% market share
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK) - 25.44% market share
• VanEck High Yield Muni ETF (HYD) - 7.43% market share

Expense Ratio:

SUPR's expense ratio is 0.35%.

Investment Approach & Strategy:

SUPR employs a passive management approach, tracking the ICE BofA US High Yield Constrained Index. The fund invests primarily in below-investment-grade corporate bonds with maturities ranging from 1 to 10 years.

Key Points:

• ESG-focused high-yield bond ETF
• Diversified exposure to various industries
• Strong issuer reputation and management
• Competitive returns and benchmark outperformance
• Potential for future growth

Risks:

• High volatility associated with high-yield bonds
• Credit risk and potential for defaults
• Interest rate sensitivity
• ESG factors may not guarantee positive impact

Who Should Consider Investing:

Investors seeking:

• High current income
• Exposure to high-yield corporate bonds
• Sustainable and responsible investment
• Diversified fixed income allocation

Fundamental Rating Based on AI: 7.5

SUPR receives a rating of 7.5 based on an AI analysis considering various factors like financial performance, market position, and future prospects. The strong brand recognition, ESG focus, and competitive returns contribute significantly to the rating, while the relatively small market share and inherent risks associated with high-yield bonds present areas for improvement.

Resources:

• iShares ESG Advanced High Yield Corporate Bond ETF (SUPR): https://www.ishares.com/us/products/239706/ishares-esg-advanced-high-yield-corporate-bond-etf
• BlackRock Website: https://www.blackrock.com/us/individual/
• iShares ETF Market Share Data: https://etfdb.com/compare/etfs/HYG-JNK-HYD-SUPR/ishares-iboxx-high-yield-corporate-bond-spdr-bloomberg-barclays-high-yield-bond-vaneck-high-yield-muni-ishares-esg-advanced-high-yield-corporate-bond-etf

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.