iShares ESG USD Corporate Bond ETF (SUSC)

ETF iShares ESG USD Corporate Bond ETF (SUSC)

Profile:

SUSC is an ESG-focused ETF that invests in USD-denominated corporate bonds issued by companies with high ESG ratings. It aims to provide investors with exposure to a diversified portfolio of investment-grade corporate bonds while aligning with sustainable investment principles.

Objective:

The primary investment goal of SUSC is to generate income and capital appreciation by investing in a portfolio of ESG-rated USD corporate bonds.

Issuer:

BlackRock, the world's largest asset manager, issues SUSC.

Reputation and Reliability:

BlackRock has a strong reputation for its investment expertise and track record. The firm manages over $8 trillion in assets and is known for its robust risk management and governance practices.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in fixed income and ESG investing.

Market Share:

SUSC has a market share of approximately 2% within the ESG corporate bond ETF space.

Total Net Assets:

SUSC has approximately $1.5 billion in total net assets.

Moat:

SUSC's competitive advantages include:

• ESG Focus: The ETF offers investors a way to access the growing ESG corporate bond market.
• BlackRock's Expertise: BlackRock's size and experience provide SUSC with access to a vast network of issuers and market insights.
• Liquidity: SUSC is a relatively liquid ETF with an average daily trading volume of over $5 million.

Financial Performance:

Since its inception in 2018, SUSC has generated an annualized return of approximately 4%. It has outperformed its benchmark index, the Bloomberg Barclays US Corporate Bond Index, over the same period.

Growth Trajectory:

The ESG corporate bond market is expected to experience significant growth in the coming years, driven by increasing investor demand for sustainable investments. This trend bodes well for SUSC's future growth prospects.

Liquidity:

SUSC has an average daily trading volume of over $5 million, making it a relatively liquid ETF. The bid-ask spread is typically around 0.05%, indicating low trading costs.

Market Dynamics:

The ETF's market environment is influenced by factors such as interest rate changes, economic growth, and credit spreads.

Competitors:

Key competitors of SUSC include:

• iShares ESG USD Corporate Bond UCITS ETF (SUSG)
• SPDR Bloomberg Barclays ESG1 USD Corporate Bond UCITS ETF (SBEG)

Expense Ratio:

The expense ratio of SUSC is 0.20%.

Investment Approach and Strategy:

SUSC tracks the Bloomberg Barclays MSCI US Corporate ESG Select Index, which comprises USD-denominated investment-grade corporate bonds issued by companies with high ESG ratings.

Key Points:

• ESG-focused corporate bond ETF
• Managed by BlackRock
• Outperforms benchmark index
• Relatively liquid
• Low expense ratio

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of fixed-income investments.
• Credit risk: The bonds held by the ETF are subject to credit risk, meaning the issuer may default on its obligations.
• Market risk: The ETF's value can fluctuate due to changes in market conditions.

Who Should Consider Investing:

SUSC is suitable for investors who:

• Seek exposure to the ESG corporate bond market
• Have a long-term investment horizon
• Are comfortable with the risks associated with fixed-income investments

Fundamental Rating Based on AI:

7/10

SUSC has strong fundamentals, including a diversified portfolio, experienced management team, and competitive expense ratio. However, its relatively small market share and short track record limit its overall rating.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• BlackRock website
• iShares website
• Bloomberg Terminal

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