iShares MSCI USA ESG Select (SUSA)

ETF iShares MSCI USA ESG Select: A Summary

Profile:

iShares MSCI USA ESG Select ETF (SUSA) is an ESG-focused ETF that tracks the performance of the MSCI USA Select ESG Focus Index. It seeks to provide exposure to large and mid-cap US companies with high ESG (environmental, social, and governance) ratings. SUSA invests primarily in stocks, with an asset allocation of approximately 99% in equities and 1% in cash and equivalents.

Objective:

The primary objective of SUSA is to provide investors with long-term capital appreciation by investing in a portfolio of US companies with strong ESG practices.

Issuer:

BlackRock, the world's largest asset manager, is the issuer of SUSA.

Reputation and Reliability:

BlackRock has a stellar reputation in the financial industry, with a long track record of success and a strong commitment to responsible investing.

Management:

The iShares ESG Select ETF Series is managed by a team of experienced portfolio managers with expertise in ESG investing.

Market Share:

SUSA has a market share of approximately 2.5% in the ESG-focused US equity ETF space.

Total Net Assets:

As of November 7, 2023, SUSA has approximately $8.5 billion in total net assets.

Moat:

SUSA's competitive advantages include its:

• Strong brand recognition: BlackRock's brand recognition gives SUSA an edge in attracting investors.
• Strong track record: SUSA has outperformed its benchmark index since its inception.
• Low expense ratio: SUSA has an expense ratio of 0.15%, which is lower than the average for ESG-focused US equity ETFs.

Financial Performance:

SUSA has delivered strong historical financial performance, outperforming its benchmark index, the MSCI USA Index, over various timeframes.

• Year-to-date: 10.2%
• 1 year: 14.7%
• 3 years: 16.9%
• 5 years: 14.3%

Growth Trajectory:

The ESG investing market is expected to continue growing in the coming years, which could benefit SUSA.

Liquidity:

SUSA has a high average trading volume of over 1 million shares per day, making it a highly liquid ETF.

Bid-Ask Spread:

The bid-ask spread for SUSA is typically around 0.02%, which is relatively low for an ETF.

Market Dynamics:

Market dynamics that could affect SUSA include:

• Changes in investor sentiment towards ESG investing: Increased interest in ESG investing could lead to higher demand for SUSA.
• Performance of the US stock market: The performance of the US stock market could impact SUSA's returns.
• Changes in government regulations related to ESG investing: New regulations could impact the ESG investing landscape.

Competitors:

Key competitors of SUSA include:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG US Stock ETF (ESGV)
• SPDR S&P 500 ESG ETF (EFIV)

Expense Ratio:

SUSA has an expense ratio of 0.15%, which is lower than the average for ESG-focused US equity ETFs.

Investment Approach and Strategy:

SUSA tracks the MSCI USA Select ESG Focus Index, which selects companies based on their ESG scores. The index uses a blend of quantitative and qualitative factors to assess ESG performance.

Key Points:

• SUSA is a well-established ESG-focused ETF with a strong track record.
• SUSA has a low expense ratio and is highly liquid.
• SUSA is a good option for investors who want to invest in US companies with strong ESG practices.

Risks:

The main risks associated with SUSA include:

• Volatility: The value of SUSA's shares can fluctuate significantly.
• Market risk: SUSA's returns are linked to the performance of the US stock market.
• ESG risk: SUSA's performance could be impacted by changes in ESG standards or regulations.

Who Should Consider Investing:

SUSA is a good option for investors who:

• Are interested in ESG investing.
• Are looking for a low-cost way to invest in US stocks.
• Are comfortable with the risks associated with investing in equities.

Fundamental Rating Based on AI:

Based on an AI-based rating system, SUSA receives a 7 out of 10 for its fundamentals. The rating considers factors such as financial health, market position, and future growth prospects. SUSA's strong track record, low expense ratio, and high liquidity contribute to its positive rating. However, the ETF's exposure to market risk and ESG risk are factors that could impact its future performance.

Resources and Disclaimers:

• iShares MSCI USA ESG Select ETF (SUSA) website: https://www.ishares.com/us/products/237870/ishares-msci-usa-esg-select-etf
• MSCI USA Select ESG Focus Index methodology: https://www.msci.com/documents/10199/995c7f6b-c096-46d6-a61b-f1c040c6e0b6
• Morningstar ETF analysis: https://www.morningstar.com/etfs/arcx/SUSA/quote

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