The SUSAFund is managed by BlackRock Fund Advisors (BFA), a renowned player in the asset management industry. With a commitment to Environmental, Social, and Governance (ESG) principles, BFA utilizes an indexing approach to mirror the performance of the MSCI USA Extended ESG Select Index. This index, curated by MSCI Inc., emphasizes companies with strong ESG characteristics while excluding those involved in controversial sectors, reflecting a socially responsible investment ethos.
Although the SUSA ETF primarily focuses on tracking the MSCI USA Extended ESG Select Index, which optimizes exposure to positive environmental, social, and governance (ESG) characteristics, it may still distribute dividends. The dividend eligibility and distribution of SUSA are influenced by the dividend policies and performances of the underlying companies within the index. Investors considering SUSA for their portfolios should note that while the fund emphasizes ESG factors, it may still provide dividend returns based on the performance of its constituent securities.
Tracking the MSCI USA Extended ESG Select Index lies at the heart of the strategy for the SUSA ETF. This fund seeks to replicate the performance of the index, which comprises 172 securities chosen for their positive environmental, social, and governance (ESG) characteristics. The underlying methodology emphasizes companies with high ESG ratings while maintaining risk and return profiles akin to the broader MSCI USA Index. By excluding firms involved in controversial industries and focusing on ESG factors, SUSA provides investors with exposure to socially responsible investments within the U.S. equity market. Utilizing a representative sampling indexing strategy, SUSA endeavors to mirror the index's composition while keeping costs low and minimizing the risks associated with active management.
The correlation aspect of the iShares MSCI USA ESG Select ETF (SUSA) is integral in understanding its behavior concerning the broader U.S. equity market, particularly with a focus on environmental, social, and governance (ESG) criteria. As SUSA tracks the MSCI USA Extended ESG Select Index, its correlation with companies exhibiting strong ESG characteristics could potentially differ from traditional market indices. Investors often analyze SUSA's correlation with other ESG-focused assets and conventional market indices to make informed decisions, leveraging insights into both sustainable investing trends and broader market dynamics. For a deeper understanding of these correlations and their implications, investors can utilize the ETF Insider web app, which provides comprehensive data visualization tools to study correlations and overlaps within the ETF landscape.
The SUSA ETF primarily focuses on tracking the MSCI USA Extended ESG Select Index, emphasizing companies with positive environmental, social, and governance (ESG) characteristics. As of the latest available data, a substantial portion of this index is represented by securities in the technology sector. This strategic emphasis aligns with the ETF's overarching objective of promoting sustainable investment practices while seeking to replicate the performance of the broader U.S. market. By investing in companies with strong ESG profiles within the technology sector, the ETF aims to provide investors with exposure to both potential growth opportunities and sustainable investment principles. Additionally, the ETF's approach incorporates exclusionary screening, which excludes companies involved in controversial or environmentally harmful activities, further reinforcing its commitment to responsible investing.
The iShares ESG Aware MSCI USA ETF (SUSA) is designed to mirror the investment results of the MSCI USA Extended ESG Select Index. This index optimizes exposure to companies demonstrating positive environmental, social, and governance (ESG) characteristics, while maintaining risk and return profiles similar to the broader MSCI USA Index. As of its latest update, the fund holds 172 securities from the MSCI USA Index, with a focus on excluding companies involved in controversial industries such as tobacco, alcohol, and weapons. The index's exposure notably tilts towards the technology sector, reflecting the evolving landscape of sustainable investing within this industry. For investors seeking to align their portfolios with ESG principles while maintaining exposure to U.S. equities, SUSA offers a tailored approach.
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