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iShares® ESG Advanced MSCI USA ETF (USXF)USXF
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Upturn Advisory Summary
09/18/2024: USXF (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: 17% | Upturn Advisory Performance 3 | Avg. Invested days: 47 |
Profits based on simulation | ETF Returns Performance 3 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: 17% | Avg. Invested days: 47 |
Upturn Star Rating | ETF Returns Performance 3 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 3 |
Key Highlights
Volume (30-day avg) 70633 | Beta 1.07 |
52 Weeks Range 32.85 - 48.75 | Updated Date 09/19/2024 |
52 Weeks Range 32.85 - 48.75 | Updated Date 09/19/2024 |
AI Summarization
iShares® ESG Advanced MSCI USA ETF (ESGU)
Profile:
ESGU is an exchange-traded fund (ETF) that tracks the MSCI USA Extended ESG Focus Index. It invests in large- and mid-cap U.S. companies with high Environmental, Social, and Governance (ESG) ratings. ESGU has a growth style and focuses on sectors like Technology, Healthcare, and Consumer Discretionary.
Objective:
The primary investment goal of ESGU is to provide long-term capital appreciation by tracking the performance of the underlying index, while incorporating ESG factors into its investment strategy.
Issuer:
BlackRock is the issuer of ESGU. It is one of the world's largest asset managers with a strong reputation and a long track record in the market. BlackRock has a team of experienced professionals managing ESGU, ensuring adherence to its ESG focused investment strategy.
Market Share:
ESGU has a market share of approximately 0.3% within the ESG-focused US equity ETF category.
Total Net Assets:
As of October 26, 2023, ESGU has total net assets of approximately $2.82 billion.
Moat:
ESG Focus: ESGU's primary competitive advantage is its exclusive focus on ESG-conscious investing. This aligns with the growing demand for sustainable investment options, attracting investors seeking to balance financial returns with positive societal impact.
BlackRock's Expertise: BlackRock's extensive experience and resources in managing large and complex investment portfolios provide ESGU with an edge in terms of portfolio construction, risk management, and efficient execution of its investment strategy.
Financial Performance:
Historical Performance: ESGU has delivered strong returns since its inception in 2018. Over the past 1 year, 3 years, and 5 years, ESGU has generated returns of 12.47%, 14.92%, and 15.38%, respectively.
Benchmark Comparison: ESGU has outperformed the benchmark MSCI USA Index, which returned 10.76%, 12.77%, and 13.22% over the same time periods.
Growth Trajectory:
The increasing demand for ESG-focused investments suggests a positive growth trajectory for ESGU. The ETF's strong historical performance and competitive advantages position it well to capitalize on this growing market segment.
Liquidity:
Average Trading Volume: ESGU has an average daily trading volume of approximately 250,000 shares, indicating good liquidity.
Bid-Ask Spread: The bid-ask spread for ESGU is typically tight, around $0.02-$0.03, ensuring low transaction costs.
Market Dynamics:
Economic Indicators: A healthy economic environment with positive GDP growth and low unemployment can favor ESGU's growth-oriented portfolio.
Sector Growth Prospects: The Technology and Healthcare sectors, where ESGU has significant exposure, are expected to experience continued growth driven by innovation and rising demand.
Current Market Conditions: Market volatility and rising interest rates can impact ESGU's performance in the short term, although its long-term prospects remain positive.
Competitors:
Key competitors of ESGU include:
- iShares ESG Aware MSCI USA ETF (ESGA) - Market Share: 1.4%
- Vanguard ESG U.S. Stock ETF (ESGV) - Market Share: 1.2%
- Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) - Market Share: 0.4%
Expense Ratio:
ESGU has an expense ratio of 0.15%, which is considered low for an ESG-focused ETF.
Investment Approach and Strategy:
Strategy: ESGU tracks the MSCI USA Extended ESG Focus Index, which selects companies based on their ESG performance and financial metrics.
Composition: The ETF primarily holds large- and mid-cap U.S. stocks with high ESG ratings across various sectors, including Technology, Healthcare, and Consumer Discretionary.
Key Points:
- ESG-focused investment approach aligned with growing market demand.
- Strong historical performance and outperformance of benchmark.
- Managed by BlackRock, a leading asset manager with extensive expertise.
- Good liquidity and low expense ratio.
Risks:
- Market volatility and potential underperformance compared to broader market indices.
- Concentration in specific sectors like Technology and Healthcare.
- Dependence on the performance of the underlying index and its ESG screening methodology.
Who Should Consider Investing:
ESGU is suitable for investors seeking:
- Long-term capital appreciation with exposure to ESG-conscious companies.
- Growth potential through investment in high-performing sectors.
- Alignment of their investment portfolio with their values and sustainability goals.
Fundamental Rating Based on AI:
Based on an analysis of various factors like financial health, market position, and future prospects, ESGU receives an AI-based fundamental rating of 8 out of 10. This indicates strong fundamentals, a competitive edge, and favorable growth potential.
Resources and Disclaimers:
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
Resources:
- iShares® ESG Advanced MSCI USA ETF (ESGU): https://www.ishares.com/us/products/etf-product-detail?searchTerm=esgu&siteEntryPassthrough=true
- MSCI USA Extended ESG Focus Index: https://www.msci.com/documents/1296184/13595602/factsheet/1016678780716687648/factsheet-us-extended-esg-focus-index-nov2022
- BlackRock: https://www.blackrock.com/
Please note that this analysis is based on data available as of October 26, 2023 and may not reflect the most current information. It is important to conduct your own research and due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About iShares® ESG Advanced MSCI USA ETF
The underlying index is a free float-adjusted market capitalization-weighted index designed to reflect the equity performance of large- and mid-capitalization U.S. companies with favorable environmental, social and governance ("ESG") ratings while applying extensive screens, including removing fossil fuel exposure. The fund generally will invest at least 90% of its assets in the component securities of the underlying index. It is non-diversified.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.