The AI (ChatGPT) ESG Stock Investing Guide: iShares ESG Screened S&P Small-Cap ETF (XJR)

Here is the response from ChatGPT for the prompt iShares ESG Screened S&P Small-Cap ETF (XJR) entered on April 30, 2023

The iShares ESG Screened S&P Small-Cap ETF (XJR) is an exchange-traded fund (ETF) that seeks to provide investors with exposure to small-cap companies in the US equity market that meet high environmental, social, and governance (ESG) standards. The fund tracks the S&P SmallCap 600 ESG Screened Index, which is composed of small-cap companies in the S&P SmallCap 600 index that meet certain ESG criteria and excludes companies that are involved in certain activities, such as tobacco or weapons.

XJR invests in small-cap companies across various sectors, including financials, industrials, and healthcare. The fund uses a combination of positive and negative screens to select companies with strong ESG credentials and exclude those that do not meet certain ESG criteria.

XJR's investment process focuses on companies that have strong ESG credentials and a track record of sustainable practices. The fund uses a proprietary ESG rating system to evaluate companies on various ESG factors, including climate change, labor practices, and corporate governance. Only companies with an ESG rating above a certain threshold are included in the index, and those that are involved in certain controversial activities are excluded.

As of March 31, 2023, the fund held over 600 stocks, with the top ten holdings representing approximately 5% of the fund's total assets. The largest sector allocations were in industrials, healthcare, and consumer discretionary. The companies held in the XJR portfolio are screened based on various ESG criteria, which are designed to identify companies that exhibit strong sustainability practices and meet certain ethical and social standards.

In terms of costs, XJR has a total expense ratio of 0.17%, which is relatively low compared to other actively managed funds. This makes XJR an attractive option for investors who are looking for exposure to small-cap companies in the US equity market while also keeping costs in mind.

The iShares ESG Screened S&P Small-Cap ETF (XJR) offers investors exposure to small-cap companies in the US equity market that meet high ESG standards. Its investment strategy focuses on companies with strong ESG credentials and a track record of sustainable practices, and uses a proprietary ESG rating system to evaluate companies. Additionally, the relatively low expense ratio makes it an attractive option for cost-conscious investors who are looking for exposure to small-cap companies in the US equity market.

However, it's worth noting that XJR's focus on ESG factors may mean that it has a different risk profile than other funds that track the S&P SmallCap 600 index, which may not consider ESG criteria. Additionally, small-cap companies tend to be more volatile and have higher risks than large-cap companies, and investors should carefully consider their investment goals, risk tolerance, and investment time horizon before investing in XJR or any other small-cap fund.

Overall, the iShares ESG Screened S&P Small-Cap ETF (XJR) is a solid option for investors who are looking for exposure to small-cap companies in the US equity market with a focus on ESG factors. Its investment strategy and proprietary ESG rating system ensure that it invests in companies with strong sustainability and ethical practices, while also seeking to mitigate risks associated with ESG factors. Additionally, the relatively low expense ratio makes it an attractive option for cost-conscious investors who are looking for exposure to small-cap companies in the US equity market.

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

See what a $1,000 investment in iShares ESG Screened S&P Small-Cap ETF) (XJR) is worth today.

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