(SUSA) iShares MSCI USA ESG Select - Ratings and Ratios

The iShares MSCI USA ESG Select ETF (SUSA) is a tailored investment vehicle designed for those seeking alignment with environmental, social, and governance (ESG) principles without sacrificing broad market exposure. It allocates at least 90% of its assets to securities within its underlying index, ensuring a high level of representation. The remaining 10% is reserved for strategic investments in derivatives, cash, and equivalents, offering flexibility to optimize returns and manage risk.

At its core, SUSA employs an optimized indexing strategy. It aims to enhance ESG exposure while maintaining risk and return profiles akin to the MSCI USA Index. This balance is crucial for investors who prioritize ESG factors but still want performance comparable to the broader market. The funds approach reflects the growing demand for sustainable investing, appealing to those who seek both financial returns and positive societal impact.

Tracking the MSCI USA ESG Select Index, SUSA screens companies based on stringent ESG criteria, excluding those involved in controversial activities. This rigorous selection process ensures the fund aligns with global sustainability standards, making it a suitable choice for investors committed to ethical practices. The ETFs structure allows it to replicate the index efficiently, with a competitive expense ratio that enhances its appeal to cost-conscious investors.

With an AUM of $3.77 billion, SUSA offers substantial liquidity and a diversified portfolio. Its expense ratio of 0.25% underscores its cost-effectiveness. While it mirrors the MSCI USA Index closely, the ESG screens may result in slight variations in holdings, reflecting the funds commitment to sustainability. This makes SUSA an attractive option for fund managers and investors aiming to integrate ESG into their strategies without compromising on market performance.