(SUSC) iShares ESG USD Corporate - Ratings and Ratios

The iShares ESG USD Corporate Bond ETF (NASDAQ:SUSC) is an exchange-traded fund that tracks a specific index, focusing on investment-grade corporate bonds denominated in USD, with a filter for Environmental, Social, and Governance (ESG) criteria. This means the fund is designed for investors seeking exposure to corporate bonds while adhering to certain sustainability standards.

The funds investment strategy involves allocating at least 90% of its assets to the securities that make up the tracked index. The remaining up to 10% can be invested in derivatives such as futures, options, and swap contracts, as well as in cash, cash equivalents, and other securities not included in the index but deemed by BlackRocks investment team (BFA) to enhance the funds ability to mirror the indexs performance. This flexible approach allows the fund managers to optimize tracking and potentially capitalize on market opportunities.

From a technical analysis perspective, the funds price action indicates a stable trend. The last price is $22.87, slightly above its short-term and long-term moving averages (SMA20: $22.76, SMA50: $22.65, SMA200: $22.64), suggesting a positive momentum. The Average True Range (ATR) is 0.11, or 0.49%, indicating relatively low volatility. The price is also within its 52-week range of $21.63 to $23.15, showing resilience. Given these technical indicators, a potential forecast could involve a continued stabilization or slight appreciation, assuming the ATR remains low and the price stays above its moving averages.

Fundamentally, the fund has a substantial Assets Under Management (AUM) of $1,146.25 million USD, indicating a considerable investor base and liquidity. Combining this with the technical analysis, a forecast for SUSC could involve a steady performance, potentially edging towards the upper end of its 52-week range if market conditions remain favorable and the ESG-focused corporate bond market continues to attract investors. The use of derivatives for hedging or speculative purposes within the allowed 10% allocation could further influence the funds performance, potentially enhancing returns or mitigating risks.

Looking ahead, the interplay between the funds technical indicators and fundamental strengths suggests a potential for stable returns, assuming the broader market for ESG-compliant corporate bonds remains robust. Investors should monitor changes in interest rates, credit spreads, and ESG regulatory environments, as these factors could significantly impact the funds performance. A continued trend of sustainable investing and the attractiveness of corporate bonds could support the funds growth and stability.