iShares ESG MSCI USA Leaders ETF (SUSL)

ETF Overview: iShares ESG MSCI USA Leaders ETF (SUSL)

Profile:

The iShares ESG MSCI USA Leaders ETF (SUSL) is an ESG-focused ETF that tracks the performance of the MSCI USA Leaders ESG Index. This index consists of large and mid-cap US companies with strong environmental, social, and governance (ESG) practices. SUSL invests in a diversified portfolio of stocks across various sectors, with a focus on industries that are leading the way in sustainability and social responsibility.

Objective:

The primary investment goal of SUSL is to provide long-term capital appreciation by investing in companies with strong ESG performance. The fund seeks to track the benchmark index as closely as possible, offering investors exposure to a well-diversified portfolio of leading ESG companies in the US market.

Issuer:

The issuer of SUSL is BlackRock, Inc. (BLK), one of the world's largest asset management companies with over $10 trillion in assets under management. BlackRock has a strong reputation and a proven track record in the ETF market.

Management:

The ETF is managed by a team of experienced investment professionals at BlackRock. The team has a deep understanding of ESG investing and utilizes a rigorous research process to select companies for inclusion in the portfolio.

Market Share & Total Net Assets:

SUSL has a market share of approximately 0.4% in the ESG-focused ETF sector, with total net assets of around $1.2 billion as of November 8, 2023.

Moat:

The competitive advantages of SUSL include its:

• Focus on ESG leadership: The ETF provides exposure to companies that are recognized leaders in sustainability and social responsibility.
• Diversification: The portfolio is well-diversified across sectors and industries, reducing risk and offering broad market exposure.
• BlackRock's expertise: BlackRock's extensive experience and resources in asset management and ESG investing allow for efficient portfolio management and selection of high-quality companies.

Financial Performance:

SUSL has delivered competitive returns since its inception in 2018. However, remember that past performance does not guarantee future results.

Benchmark Comparison:

The ETF has outperformed its benchmark index, the MSCI USA Leaders Index, over various timeframes, demonstrating the effectiveness of its ESG focus.

Growth Trajectory:

The growth of ESG investing is expected to continue, driving potential growth for SUSL.

Liquidity:

SUSL has an average daily trading volume of over 200,000 shares, ensuring good liquidity for investors. The bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

Several factors positively impact SUSL's market environment:

• Growing investor demand for ESG investments
• Increasing awareness of the importance of sustainable investing
• Favorable regulatory environment for ESG investing

Competitors:

Key competitors of SUSL include:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG US Stock ETF (ESGV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USLE)

Expense Ratio:

The expense ratio for SUSL is 0.15%, which is considered low compared to other ESG-focused ETFs.

Investment Approach & Strategy:

SUSL passively tracks the MSCI USA Leaders ESG Index. The fund primarily invests in stocks of large and mid-cap US companies with a strong ESG profile.

Key Points:

• ESG-focused ETF with exposure to leading US companies in sustainability.
• Competitive returns and low expense ratio.
• Managed by BlackRock, a global leader in asset management.
• Strong growth potential due to increasing demand for ESG investing.

Risks:

• Volatility: SUSL's price may fluctuate due to market volatility and changes in the ESG landscape.
• Market Risk: The fund's performance is tied to the underlying equity markets, which can experience periods of decline.

Who Should Consider Investing:

SUSL is suitable for investors who:

• Seek long-term capital appreciation through exposure to leading ESG companies.
• Are concerned about the environmental and social impact of their investments.
• Believe in the potential of sustainable investing.

Fundamental Rating Based on AI:

Based on an analysis of various factors like financial health, market position, and growth prospects, the AI-based rating system assigns SUSL a 7 out of 10. This rating indicates a strong overall profile, but investors should conduct further research and consider their individual investment goals and risk tolerance before making an investment decision.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• iShares website
• Morningstar
• Bloomberg

This analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and consult with a financial professional before making any investment decisions.