(XJR) iShares ESG Screened S&P - Ratings and Ratios

The iShares ESG Screened S&P Small-Cap ETF (BATS:XJR) is designed to mirror the performance of its underlying index, which comprises small-cap U.S. equities that pass certain environmental, social, and governance (ESG) screens. By excluding companies embroiled in contentious business practices or controversies, as per S&P Dow Jones Indices LLCs criteria, the fund caters to investors seeking to align their investments with ESG considerations.

As an ETF categorized under Small Blend, XJR offers a diversified portfolio that is tilted towards smaller U.S. companies that meet specific ESG criteria. This makes it an attractive option for investors looking to tap into the small-cap segment while adhering to responsible investment principles. The funds underlying index is constructed to provide a representation of the small-cap U.S. equity market, minus companies that fail to meet the ESG thresholds, thereby potentially reducing exposure to companies with higher ESG risks.

Analyzing the technical data, the last price of $39.15 indicates a recent uptick, sitting above both its 20-day and 50-day simple moving averages (SMA20 and SMA50) of $36.98 and $36.79, respectively. This suggests a short-term bullish trend. However, being below its 200-day SMA of $40.21, it indicates a longer-term bearish or consolidation trend. The Average True Range (ATR) of 0.98, or 2.51%, signifies moderate volatility. Given these technical indicators, a potential trading strategy could involve watching for a breakout above the 200-day SMA to confirm a longer-term uptrend.

From a fundamental perspective, the Assets Under Management (AUM) of $95.07 million USD indicate a relatively modest size, which could impact liquidity but also suggests room for growth as ESG-focused investing continues to attract more capital. Combining this with the technical analysis, a forecast could be that if the ETF continues to gain traction, potentially breaking above its 52-week high of $44.95, it could attract more investors, driving the price up. Conversely, failure to break through resistance levels could lead to a retracement towards the 52-week low of $32.75. Thus, a key level to watch is the $40.21 (200-day SMA), as a sustained move above this could signal a stronger uptrend.

Forecasting further, if the trend reverses and the ETF breaks above $40.21, and considering the growing interest in ESG investments, theres potential for the fund to attract more assets, potentially driving the price towards or beyond its 52-week high. Conversely, a decline below the SMA20 and SMA50 could signal a downturn, potentially testing the lower end of its 52-week range.