The AI (ChatGPT) ESG Stock Investing Guide: iShares MSCI USA ESG Select ETF (SUSA)

Here is the response from ChatGPT for the prompt iShares MSCI USA ESG Select ETF (SUSA) 500 words entered on April 30, 2023

iShares MSCI USA ESG Select ETF (SUSA) is an exchange-traded fund that invests in US companies with strong environmental, social, and governance (ESG) practices. The fund seeks to track the MSCI USA ESG Select Index, which is composed of companies that have high ESG ratings relative to their industry peers, as determined by MSCI ESG Research.

As of April 2023, SUSA has approximately $1.3 billion in assets under management and a net expense ratio of 0.25%, making it a cost-effective option for investors who want exposure to companies with strong ESG practices.

SUSA's top holdings include companies such as Microsoft, Alphabet (Google), and Johnson & Johnson, which are known for their commitment to sustainable practices and corporate responsibility. The fund is well-diversified across various sectors, with information technology, healthcare, and consumer discretionary sectors making up the largest holdings.

One of the benefits of SUSA is its focus on companies with high ESG ratings, which may lead to better long-term performance compared to traditional US equity ETFs. Studies have shown that companies with strong ESG ratings tend to have lower risk and better financial performance over the long term, as they are better equipped to manage environmental and social risks, attract and retain talent, and innovate for the future.

Another advantage of SUSA is its exclusion of companies involved in controversial activities, such as tobacco, weapons, and fossil fuels. This screening process ensures that the fund invests in companies that have a positive impact on society and the environment, while avoiding those that engage in activities that may be harmful.

However, one potential downside of SUSA is its focus on US companies, which may result in lower diversification compared to global ESG ETFs. This may lead to higher volatility and greater potential for losses in the short term. Additionally, SUSA's higher expense ratio may make it less attractive to investors who are focused on minimizing fees.

In terms of performance, SUSA has generally performed well since its inception in 2005, with returns that are generally in line with the broader US equity market. However, as with any investment, past performance is not a guarantee of future results.

Overall, iShares MSCI USA ESG Select ETF (SUSA) is a good option for investors who want exposure to US companies with strong ESG practices and value a screening process that excludes companies involved in controversial activities. The fund's low cost relative to actively managed funds and focus on companies with strong ESG ratings make it an attractive option for investors who want to integrate ESG considerations into their portfolios without sacrificing diversification or returns. However, investors should carefully consider their investment goals, risk tolerance, and other factors before investing in SUSA or any other ETF.

Table and Chart of SUSA Performance (From buyupside.com. Not from chatGPT.)

See what a $1,000 investment in iShares MSCI USA ESG Select ETF (SUSA) is worth today.

Values are based on monthly closes adjusted for splits and dividends from Alpha Vantage.