(SUSB) iShares ESG 1-5 Year USD - Ratings and Ratios

The iShares ESG 1-5 Year USD Corporate Bond ETF (NASDAQ:SUSB) is designed to provide exposure to short-term corporate bonds in the U.S. market while integrating environmental, social, and governance (ESG) criteria. The fund primarily invests in securities included in its underlying index, developed by Bloomberg Finance L.P., which incorporates ESG ratings from MSCI ESG Research LLC. This ESG-focused approach aims to align the portfolio with companies demonstrating stronger sustainability and governance practices.

The ETF typically allocates at least 90% of its assets to the component securities of the index, ensuring close tracking of the benchmark. The remaining 10% may be invested in derivatives, such as futures, options, and swap contracts, as well as cash and cash equivalents, to enhance liquidity or hedge positions. This flexible allocation allows the fund to maintain liquidity while adhering to its ESG investment mandate.

The funds underlying index leverages MSCI ESG Researchs ratings to evaluate companies based on their ESG performance. This integration ensures that the portfolio excludes or underweights firms with lower ESG scores, focusing instead on those with stronger track records in areas such as carbon emissions, labor practices, and board governance. The index is maintained by Bloomberg Index Services Limited, a subsidiary of Bloomberg, further enhancing its credibility and transparency.

From a technical perspective, SUSB has shown stable price action, with its 20-day moving average at 24.79 and 50-day moving average at 24.75, both slightly below its last price of 24.88. The average true range (ATR) of 0.08 indicates low volatility, suggesting the ETF is suitable for investors seeking stable, short-term bond exposure. The average 20-day volume of 125,554 shares reflects moderate liquidity, which is typical for ESG-focused fixed-income ETFs.

Fundamentally, the ETF manages assets under management (AUM) of $973.01 million, demonstrating its appeal among investors prioritizing ESG considerations in their fixed-income portfolios. The combination of a short-duration strategy and ESG filtering makes SUSB attractive for risk-averse investors seeking to align their bond investments with sustainable principles.