iShares ESG MSCI USA Leaders ETF (SUSL)SUSL

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

Profile:

iShares ESG MSCI USA Leaders ETF (SUSL) is an exchange-traded fund (ETF) that tracks the performance of the MSCI USA ESG Leaders Index. This index includes large and mid-cap US companies with high ESG (Environmental, Social, and Governance) ratings, aiming to provide exposure to sustainable leaders within the US market.

Objective:

The primary investment goal of SUSL is to track the performance of the underlying index, delivering returns that closely mirror the index's movements while also promoting environmental and social responsibility through its ESG focus.

Issuer:

BlackRock:

• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong reputation and track record, managing over $10 trillion in assets across a wide range of investment products.
• Management: BlackRock employs experienced portfolio managers and analysts with expertise in ESG investing, ensuring efficient portfolio construction and management.

Market Share:

SUSL currently holds a market share of approximately 0.15% within the ESG ETF category.

Total Net Assets:

As of November 10, 2023, SUSL has total net assets of approximately $1.5 billion.

Moat:

• ESG Focus: SUSL offers investors access to a curated portfolio of leading ESG-rated companies, catering to the growing demand for sustainable investing.
• Low Fees: SUSL has a low expense ratio compared to other ESG ETFs, making it a cost-effective option for investors.
• BlackRock's Expertise: BlackRock's extensive experience and resources in ESG investing provide SUSL with a competitive edge in portfolio construction and risk management.

Financial Performance:

• Historical Performance: Since inception in 2018, SUSL has delivered an annualized return of approximately 12%, outperforming the broader US market represented by the S&P 500.
• Benchmark Comparison: SUSL has consistently outperformed the MSCI USA Index (a broad market benchmark) and its ESG-focused peers over various timeframes.

Growth Trajectory:

The ESG investing landscape is experiencing significant growth, with increasing investor demand for sustainable investment solutions. This trend suggests positive prospects for SUSL's future growth.

Liquidity:

• Average Trading Volume: SUSL has an average daily trading volume of approximately 50,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread for SUSL is typically tight, around 0.02%, reflecting efficient market trading.

Market Dynamics:

Factors affecting SUSL's market environment include:

• Economic Indicators: Strong economic growth typically leads to higher stock market valuations, positively impacting SUSL.
• ESG Investing Trends: Growing demand for ESG investments positively influences SUSL's performance.
• Interest Rate Environment: Rising interest rates can negatively impact growth stocks, potentially affecting SUSL's performance.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USRL)
• SPDR S&P 500 ESG ETF (EFIV)

Expense Ratio:

SUSL has an expense ratio of 0.19%.

Investment Approach and Strategy:

• Strategy: SUSL passively tracks the MSCI USA ESG Leaders Index, aiming to replicate its performance.
• Composition: The ETF primarily holds large and mid-cap US stocks with high ESG ratings across various sectors.

Key Points:

• Invests in leading US companies with high ESG ratings.
• Provides exposure to sustainable investment opportunities.
• Outperformed the market and ESG peers historically.
• Low expense ratio and good liquidity.

Risks:

• Market Volatility: Stock markets experience fluctuations, impacting SUSL's value.
• ESG Rating Changes: Changes in companies' ESG ratings could affect the ETF's composition and performance.
• Limited Diversification: Focusing on ESG leaders might limit exposure to specific sectors and companies.

Who Should Consider Investing:

• Investors seeking exposure to US companies with strong ESG performance.
• Investors aiming to align their investments with sustainable values.
• Investors comfortable with moderate market risk.

Fundamental Rating Based on AI:

8.5/10

SUSL exhibits strong fundamentals due to its established issuer, competitive expense ratio, solid historical performance, and alignment with the growing ESG investment trend. However, its limited diversification and exposure to potential rating changes warrant some caution.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• iShares website: https://www.ishares.com/us/products/etf-product-detail?銘柄コード=SUSL
• BlackRock website: https://www.blackrock.com/us/individual/products/etfs/ishares-esg-msci-usa-leaders-etf-susl
• Morningstar: https://www.morningstar.com/etfs/arcx/susl/overview

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