Is iShares ESG Aware MSCI USA ETF (ESGU) a Strong ETF Right Now?

Core Insights - The iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta ETF launched on December 1, 2016, providing broad exposure to the Style Box - All Cap Growth category [1] - ESGU is managed by Blackrock and has amassed over $13.82 billion in assets, making it one of the largest ETFs in its category [5] - The fund aims to match the performance of the MSCI USA ESG Focus Index, which includes U.S. companies with positive environmental, social, and governance characteristics [5] Fund Characteristics - ESGU has an annual operating expense ratio of 0.15%, making it one of the least expensive options in the market [6] - The fund has a 12-month trailing dividend yield of 1.10% [6] - The largest sector allocation is in Information Technology at approximately 34.3%, followed by Financials and Consumer Discretionary [7] Holdings and Performance - Nvidia Corp (NVDA) is the largest holding at about 6.73%, with Microsoft Corp (MSFT) and Apple Inc (AAPL) also among the top holdings [8] - The top 10 holdings account for about 35.18% of total assets under management [8] - ESGU has returned approximately 6.34% year-to-date and 12.16% over the past year, with a trading range between $108.06 and $136.58 in the last 52 weeks [9] Alternatives - Other ETFs in the space include iShares ESG Aware MSCI EAFE ETF (ESGD) and Vanguard ESG U.S. Stock ETF (ESGV), with assets of $9.67 billion and $10.75 billion respectively [11] - ESGD has an expense ratio of 0.21% and ESGV has an expense ratio of 0.09% [11] - Traditional market cap weighted ETFs may offer cheaper and lower-risk options for investors [11]