IShares MSCI USA ESG Select ETF tries to balance environmental, social, and governance integration with the benefits of a broadly diversified, market-cap-weighted, low-turnover portfolio. But, its ESG focus results in a degree of active risk relative to its parent index that may or may not be adequately compensated. This concern has led us to downgrade the fund’s Process Pillar from High to Above Average, and results in a downgrade of its Morningstar Analyst Rating to Bronze from Silver.
Will SUSA outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable SUSA’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the SUSA management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of SUSA’s parent organization’s priorities and whether they’re in line with investors’ interests.