(SODJ) iShares MSCI Japan ESG - Ratings and Ratios

The iShares MSCI Japan ESG Screened UCITS ETF USD (Dist) is a Germany-originated ETF that tracks the Morningstar Japan TME NR JPY index, providing investors with exposure to Japans large-cap blend equity market while adhering to ESG (Environmental, Social, and Governance) screening criteria.

This ETF is designed for investors seeking to balance their portfolios with a mix of Japanese equities that have been vetted for ESG compliance. By tracking a Morningstar index, it aims to capture the performance of Japans larger companies that are considered to be more representative of the countrys equity market, while excluding those that do not meet certain ESG standards.

From a technical standpoint, the ETFs price action suggests a potential for volatility, with an Average True Range (ATR) of 0.06, translating to a 1.08% daily price movement. The current price of 5.59 is below its 20-day Simple Moving Average (SMA) of 5.70, indicating a short-term downtrend. However, it is above its 50-day SMA of 5.52, suggesting a longer-term uptrend. The 200-day SMA at 5.63 is slightly above the current price, indicating a potential resistance level. Given these indicators, a likely forecast is that the ETF may experience a short-term correction before resuming its longer-term uptrend, potentially reaching the 52-week high of 5.93 if the overall market sentiment remains positive.

Fundamentally, the ETFs Assets Under Management (AUM) stand at 2132.53M EUR, indicating a substantial investor base and liquidity. This, combined with its ESG screening, positions the ETF as a significant player in the sustainable investment segment within the Japanese equity market. As ESG considerations continue to gain traction among investors, this ETF is well-placed to attract further investment, potentially driving its AUM and price upwards.

Forecasting the ETFs future performance involves considering both its technical indicators and fundamental attributes. If the Japanese equity market continues to grow, driven by corporate governance reforms and a favorable economic outlook, and if ESG investing continues to attract more capital, the iShares MSCI Japan ESG Screened UCITS ETF is likely to benefit. A potential target could be a price of 6.00, representing a 7.3% increase from its current price, assuming the 52-week high is breached and the uptrend continues.