iShares ESG USD Corporate Bond ETF (SUSC)

Overview

The iShares ESG USD Corporate Bond ETF (SUSC) seeks to track the investment results of an index composed of U.S. dollar-denominated, investment-grade corporate bonds screened for certain environmental, social and governance (ESG) characteristics. It offers exposure to a broad range of corporate bonds while incorporating ESG considerations into the investment process.

Reputation and Reliability

BlackRock is one of the largest and most reputable asset managers globally, known for its iShares ETF platform and its track record of providing reliable and well-managed ETFs.

Management Expertise

BlackRock has extensive expertise in fixed income investing and ESG integration, with a large team of portfolio managers and analysts dedicated to managing fixed income ETFs and incorporating ESG factors into investment decisions.

Goal

The fund seeks to track the investment results of an index composed of U.S. dollar-denominated, investment-grade corporate bonds screened for certain environmental, social and governance (ESG) characteristics.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index, the ICE US Corp ESG USD Index. It employs a representative sampling strategy, which means it does not necessarily hold all of the securities in the index but rather a selection of securities that collectively have an investment profile similar to that of the index.

Composition The ETF primarily holds U.S. dollar-denominated, investment-grade corporate bonds. These bonds are issued by a variety of companies across different sectors. The portfolio is screened for ESG factors.

Market Share: SUSC's market share is moderate compared to broader corporate bond ETFs, but is growing with the increasing popularity of ESG investing.

Total Net Assets (AUM): 481717984

Key Competitors

• Vanguard ESG U.S. Corporate Bond ETF (VECP)
• Xtrackers ESG USD Corporate Bond ETF (USIG)

Competitive Landscape

The ESG corporate bond ETF market is becoming increasingly competitive. SUSC has an advantage due to BlackRock's strong brand and distribution network. However, competitors offer similar strategies at potentially lower expense ratios, and some may track slightly different ESG benchmarks. SUSC's performance relative to its benchmark and competitors is key to maintaining its market share.

Historical Performance: Historical performance data is crucial to see in table form. Please refer to fund factsheets for data.

Benchmark Comparison: Comparing the ETF's performance to the ICE US Corp ESG USD Index benchmark would gauge its effectiveness.

Expense Ratio: 0.08

Average Trading Volume

SUSC's average trading volume indicates moderate liquidity, allowing investors to buy and sell shares relatively easily under normal market conditions.

Bid-Ask Spread

The bid-ask spread for SUSC is generally tight, reflecting its liquidity and the efficiency of the market for its shares.

Market Environment Factors

SUSC is affected by factors such as interest rate changes, credit spreads, and overall economic growth. Increased demand for ESG-focused investments may drive further inflows.

Growth Trajectory

The growth trajectory of SUSC depends on the continued growth of ESG investing, demand for fixed income assets, and its ability to maintain competitive performance and expense ratios. There are no details on changes to strategy and holdings.

Competitive Edge

SUSC's competitive edge lies in BlackRock's established brand and distribution network within the ETF industry, its focus on ESG investing, and access to BlackRock's resources. Its scale allows for efficient portfolio management and competitive expense ratios. BlackRock's ESG expertise helps in selecting securities that meet the fund's ESG criteria. This can attract investors seeking to align their investments with their values, which could make SUSC more profitable than its competitors.

Volatility

SUSC's volatility is generally in line with other investment-grade corporate bond ETFs, which are typically less volatile than equity ETFs but more volatile than government bond ETFs.

Market Risk

The specific risks associated with SUSC's underlying assets include interest rate risk (the risk that bond prices will decline as interest rates rise), credit risk (the risk that issuers will default on their debt obligations), and ESG risk (the risk that the ETF's ESG screening process may not perfectly align with investors' values).

Ideal Investor Profile

The ideal investor profile for SUSC is a long-term investor seeking exposure to investment-grade corporate bonds while incorporating ESG considerations into their portfolio. Investors who are concerned about the environmental, social, and governance practices of the companies they invest in may find this ETF appealing.

Market Risk

SUSC is best suited for long-term investors seeking a diversified and ESG-conscious fixed income allocation. It is also suitable for passive index followers.

The iShares ESG USD Corporate Bond ETF (SUSC) provides access to a diversified portfolio of U.S. dollar-denominated, investment-grade corporate bonds that are screened for ESG characteristics. It leverages BlackRock's expertise in both fixed income investing and ESG integration. SUSC's performance depends on interest rate movements, credit spreads, and the overall demand for ESG investments. Investors should consider their risk tolerance and investment goals before investing in SUSC. This ETF is appropriate for investors seeking to combine financial returns with ESG values.

• LQD
• AGG
• VCSH
• SCHP
• IEF
• USIG
• VECP

Data Sources:

• iShares website
• Bloomberg
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.