iShares ESG MSCI USA Leaders ETF (SUSL US) - Investment Proposition

Core Viewpoint - iShares ESG MSCI USA Leaders ETF (SUSL) focuses on U.S. large- and mid-cap equities, emphasizing companies that excel in financially material sustainability factors while maintaining broad market representation [1] Group 1: Investment Proposition - SUSL employs a rules-based process to screen and reweight constituents, enhancing portfolio quality and governance profile without sacrificing sector diversification [1] - The ETF is expected to behave in alignment with core U.S. equity beta, exhibiting a quality and low-risk bias, with income being a secondary outcome based on constituents' payout policies [1] - Typical users of SUSL include institutional allocators with policy-aligned mandates and advisors seeking scalable building blocks for clients with documented ESG preferences [1] Group 2: Performance and Risk - The ETF may be particularly relevant when investors prioritize governance and risk management discipline, although it may underperform during sharp rallies driven by lower-rated or distressed cyclicals [1] - A key risk to monitor is style drift relative to the parent universe, which may arise from exclusions and reweightings that could lead to concentrated sector exposures over time [1]