USXF: Beating Its ESG Peers In 2024

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iShares® ESG Advanced MSCI USA ETF implements an environmental, social, and corporate governance (“ESG”) strategy focused on large companies.The USXF ETF displays expensive valuation ratios, superior ...

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The index is reviewed and rebalanced on a quarterly basis. The portfolio turnover rate in the most recent fiscal year was 12%, which is quite low. USXF portfolio The fund is almost exclusively invested in U.S.-based companies , about 67% in large and mega caps, and 33% in mid-caps . Therefore, it makes sense to use as a benchmark the S&P 500 Index, represented by SPDR S&P 500 ETF Trust . The portfolio is overweight in technology . Then, come financials  and industrials . Other sectors are below 10%. Compared to the S&P 500, USXF overweights the top 3 sectors listed above, along with real estate and materials. It underweights mostly communication, consumer staples, utilities, and ignores energy.   USXF sector breakdown  USXF is slightly more expensive than the benchmark regarding valuation ratios, as reported in the next table. Nonetheless, earnings growth and cash flow growth rates are superior.     USXF SPY   Price/Earnings 27.74 24.84   Price/Book 4.78 4.36   Price/Sales 3.57 2.8","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"FDN":"First Trust Dow Jones Internet I","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","NULG":"Nuveen ESG Large-Cap Growth ETF","ESGU":"iShares ESG Aware MSCI USA ETF","IVV":"标普500指数ETF","SH":"标普500反向ETF","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","DSI":"iShares MSCI KLD 400 Social ETF","BK4567":"ESG概念","ESGV":"Vanguard ESG US Stock ETF","BK4585":"ETF&股票定投概念","NVDA":"英伟达","LU0079474960.USD":"联博美国增长基金A","UPRO":"三倍做多标普500ETF","LU0056508442.USD":"贝莱德世界科技基金A2","SPY.AU":"SPDR® S&P 500® ETF Trust","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","USXF":"iShares ESG Advanced MSCI USA ETF","SSO":"两倍做多标普500ETF","BK4587":"ChatGPT概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4559":"巴菲特持仓","LU0109392836.USD":"富兰克林科技股A","SPXU":"三倍做空标普500ETF","BK4579":"人工智能","BK4550":"红杉资本持仓","BK4141":"半导体产品","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4551":"寇图资本持仓","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","SPY":"标普500ETF",".SPX":"S&P 500 Index","OEX":"标普100","OEF":"标普100指数ETF-iShares","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","SDS":"两倍做空标普500ETF","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0444971666.USD":"天利全球科技基金","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","EFIV":"SPDR S&P 500 ESG ETF","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","ESG":"FlexShares STOXX US ESG Select Index Fund","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4529":"IDC概念"},"translate_title":"USXF：2024年击败ESG同行","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"USXF":1,"NULG":1,"ESGV":1,"ESGU":1,"ESG":1,"EFIV":1,"DSI":1,"SPY":1,"SPY.AU":1,"FDN":0.9,"NVDA":0.89,"SH":0.6,"OEF":0.6,"UPRO":0.6,"SSO":0.6,"SPXU":0.6,"OEX":0.6,"SDS":0.6,"ESmain":0.6,"IVV":0.6,".SPX":0.6},"content_text":"iShares® ESG Advanced MSCI USA ETF implements an environmental, social, and corporate governance (“ESG”) strategy focused on large companies.The USXF ETF displays expensive valuation ratios, superior growth rates, and some excess return relative to the S&P 500.USXF has performed quite well relative to other ESG funds. Nonetheless, it may have deeper drawdowns than the benchmark in a downturn.   Olivier Le Moal USXF strategy iShares® ESG Advanced MSCI USA ETF (NASDAQ:USXF) started investing operations on 6/16/2020 and tracks the MSCI USA Choice ESG Screened Index. It implements an environmental, social, and corporate governance (“ESG”) investing approach. USXF has 367 holdings, a 12-month distribution yield of 1.1% and a total expense ratio of 0.10%. Distributions are paid quarterly. As described by the index provider MSCI, eligible stocks must be in the MSCI USA Index (parent index).  MSCI defines ESG Ratings based on research and analysis of how companies manage environmental, social and governance risks. ESG ratings are issued on a 7-point scale from AAA to CCC. Companies must have a rating of \"BBB\" or above to be eligible. MSCI also defines a ESG Controversies Score based on norms of the UN Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Global Compact. MSCI ESG Controversies Score falls on a 0-10 scale, with “0” being the worst. Companies must have a score of 3 or above to be eligible.  Moreover, companies may be excluded when they reach a threshold in revenue related to specific businesses (alcohol, tobacco, gambling, nuclear power, weapons and firearms,…).  The index is reviewed and rebalanced on a quarterly basis. The portfolio turnover rate in the most recent fiscal year was 12%, which is quite low. USXF portfolio The fund is almost exclusively invested in U.S.-based companies (98% of asset value), about 67% in large and mega caps, and 33% in mid-caps (per Fidelity classification). Therefore, it makes sense to use as a benchmark the S&P 500 Index, represented by SPDR® S&P 500 ETF Trust (SPY). The portfolio is overweight in technology (36.3% of asset value). Then, come financials (18.7%) and industrials (12.7%). Other sectors are below 10%. Compared to the S&P 500, USXF overweights the top 3 sectors listed above, along with real estate and materials. It underweights mostly communication, consumer staples, utilities, and ignores energy.   USXF sector breakdown (chart: author; data: iShares, SSGA) USXF is slightly more expensive than the benchmark regarding valuation ratios, as reported in the next table. Nonetheless, earnings growth and cash flow growth rates are superior.     USXF SPY   Price/Earnings 27.74 24.84   Price/Book 4.78 4.36   Price/Sales 3.57 2.85   Price/Cash Flow 19.76 17.06   Earnings growth % 24.95% 21.01%   Sales growth % 8.17% 8.77%   Cash flow growth % 10.72% 8.75%   Click to enlarge Data: Fidelity. The top 10 holdings, listed in the next table with fundamental ratios, represent 27.8% of assets. The top name is quite heavy: Nvidia weighs 12%. Risks related to other companies are low.   Ticker Name Weight% EPS growth %TTM P/E ttm P/E fwd Yield%   NVDA Nvidia Corp. 11.99 585.45 75.70 36.03 0.02   AVGO Broadcom Inc. 3.17 -8.30 49.13 28.12 1.58   V Visa Inc. 2.37 22.06 32.63 28.14 0.75   MA Mastercard Inc. 2.17 15.75 40.70 33.42 0.55   HD The Home Depot, Inc. 2.05 -9.49 25.40 25.02 2.35   AMD Advanced Micro Devices, Inc. 1.57 -40.86 344.91 48.81 0   ADBE Adobe Inc. 1.23 3.17 48.20 28.02 0   LIN Linde Plc 1.21 52.89 36.86 29.98 1.20   QCOM Qualcomm Inc. 1.02 -33.49 24.54 17.14 1.89   CAT Caterpillar Inc. 1.00 59.27 18.19 17.25 1.42   Click to enlarge Historical performance Since its inception, USXF has outperformed the S&P 500 by 17.4% in total return. However, the chart below shows it is more volatile and had deeper drawdowns, especially in 2022. USXF vs. S&P 500 since inception (Seeking Alpha) It is about 3% ahead of the benchmark in 2024 to date: USXF vs. S&P 500, year-to-date (Seeking Alpha) USXF vs. competitors The next table compares characteristics of USXF and five other ESG ETFs:  Nuveen ESG Large-Cap Growth ETF (NULG) Vanguard ESG U.S. Stock ETF (ESGV) iShares ESG Aware MSCI USA ETF (ESGU) iShares MSCI KLD 400 Social ETF (DSI) SPDR S&P 500 ESG ETF (EFIV).      USXF NULG ESGV ESGU DSI EFIV   Inception 6/16/2020 12/13/2016 9/18/2018 12/1/2016 11/14/2006 7/27/2020   Expense Ratio 0.10% 0.26% 0.09% 0.15% 0.25% 0.10%   AUM $989.97M $1.35B $8.43B $12.72B $4.46B $1.18B   Avg Daily Volume $3.95M $5.65M $20.54M $109.93M $13.87M $2.76M   Holdings 367 77 1466 288 405 318   Top 10 27.78% 40.43% 32.99% 30.40% 37.81% 40.48%   Turnover 12.00% 78.00% 3.00% 25.00% 4.00% 12.00%   Click to enlarge USXF is the smallest (in assets under management) and less liquid (in dollar volume) of this group. It is the less concentrated in the top 10 holdings, and is on the cheap side regarding fees. The next chart plots total returns, starting on 7/28/2020 to match all inception dates. USXF is the second best performer, shortly behind EFIV. USXF vs. competitors, since 7/28/2020 (Seeking Alpha) USXF has been leading the pack in 2024: USXF vs. competitors, year-to-date (Seeking Alpha) Takeaway iShares® ESG Advanced MSCI USA ETF implements an environmental, social, and corporate governance (“ESG”) strategy focused on large companies. Over 36% of asset value is in information technology. USXF displays expensive valuation ratios, superior growth rates and some excess return relative to the benchmark since its inception in June 2020. Moreover, it has performed quite well relative to other ESG funds, especially in the recent months.  Nevertheless, the fund’s history is short and may not be representative of the long-term potential of its strategy. In particular, the price is quite volatile due to the concentration in tech companies, and it may have deeper drawdowns than the broad market, as it already had in 2022.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2424772519"}