(IESE) iShares MSCI Europe SRI - Ratings and Ratios

The iShares MSCI Europe SRI UCITS ETF EUR (Acc) is designed to track the MSCI Europe SRI Select Reduced Fossil Fuel Index, aiming to deliver a total return that mirrors the indexs performance, encompassing both capital appreciation and income. By investing in a representative sample of the indexs constituent securities, the fund employs optimization techniques to replicate the benchmarks return, rather than holding every security in the exact proportions of the index.

The funds underlying index is constructed to focus on European large-cap companies that adhere to certain sustainability and reduced fossil fuel criteria, making it an attractive option for investors seeking to align their investments with environmental, social, and governance (ESG) principles. The MSCI Europe SRI Select Reduced Fossil Fuel Index is a subset of the broader MSCI Europe Index, which covers large and mid-cap stocks across developed European markets.

From a technical analysis perspective, the ETFs price action indicates a bullish trend, with the short-term Simple Moving Average (SMA20) at 70.92 EUR exceeding the longer-term SMA50 and SMA200, both at 70.36 EUR. The Average True Range (ATR) of 0.67 EUR, or 0.93%, suggests moderate volatility. Given the current price of 71.51 EUR, near the 52-week high of 71.78 EUR, and considering the SMA20 is acting as a support level, theres potential for the price to continue its upward trajectory, potentially testing new highs.

Fundamentally, the ETFs Assets Under Management (AUM) stand at 3448.12 million EUR, indicating a significant investor base and liquidity. The funds focus on sustainable investing, coupled with its tracking of a well-established index, positions it favorably for investors seeking ESG-compliant investments in the European equity market.

Forecasting the ETFs performance involves analyzing both technical indicators and fundamental data. Given the bullish trend indicated by the SMA20 and the proximity to the 52-week high, theres potential for continued growth, driven by the underlying indexs performance. If European large-cap stocks, particularly those with strong ESG profiles, continue to perform well, the MSCI Europe SRI Select Reduced Fossil Fuel Index is likely to rise, positively impacting the ETFs price. Therefore, a potential target could be a price level slightly above the current 52-week high, assuming the trend continues and theres no significant downturn in the European equity market or a shift away from ESG-focused investments.