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ESG - ETF AI Analysis

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ESG

FlexShares Trust FlexShares STOXX US ESG Select Index Fund (ESG)

Rating:74Outperform
Price Target:
ESG, the FlexShares STOXX US ESG Select Index Fund, has a solid overall rating driven mainly by large, high-quality technology leaders like Apple, Microsoft, Nvidia, and Broadcom, which benefit from strong financial performance and growth in AI, cloud, and services. Micron and Amazon also add to the fund’s strength with positive earnings and strategic positions in AI and digital businesses, while holdings like Berkshire Hathaway and Exxon Mobil are sound but offer more mixed signals, such as bearish technical trends or cash flow and dividend concerns. The main risk factor is the fund’s meaningful exposure to a concentrated group of high-valuation tech and AI-related companies, which could be more volatile if growth expectations cool.
Positive Factors
Strong Recent Performance
The ETF has shown positive returns over the past month and year-to-date, indicating recent upward momentum.
Leading Growth Companies in Top Holdings
Several major positions like Broadcom, Nvidia, Amazon, Exxon Mobil, Walmart, and others have delivered strong gains this year, helping support the fund’s overall results.
Broad Sector Diversification
Holdings spread across technology, financials, health care, consumer sectors, and more help reduce the impact if any one industry struggles.
Negative Factors
Heavy Tilt Toward Technology
A large share of the portfolio is in technology stocks, which can make the fund more sensitive to swings in that sector.
Mixed Performance Among Top Holdings
Some large positions such as Microsoft, Apple, JPMorgan, Berkshire Hathaway, and Eli Lilly have shown weak or negative performance this year, which can drag on returns.
High U.S. Concentration
With almost all assets in U.S. companies, the fund offers very limited geographic diversification outside the United States.

ESG vs. SPDR S&P 500 ETF (SPY)

ESG Summary

ESG is an exchange-traded fund that follows the STOXX USA ESG Select KPIs Index, focusing on U.S. companies with strong environmental, social, and governance (ESG) practices. It holds many well-known names such as Apple, Microsoft, Amazon, and JPMorgan Chase, giving investors broad exposure to the overall U.S. stock market while trying to favor more responsible businesses. Someone might invest in this ETF to seek long-term growth and diversification while aligning their money with their values. A key risk is that it is heavily invested in U.S. stocks and tech companies, so its price can rise and fall sharply with the stock market.
How much will it cost me?The FlexShares STOXX US ESG Select Index Fund (ticker ESG) has an expense ratio of 0.32%, meaning you’ll pay $3.20 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is passively managed but focuses on ESG criteria, which can involve additional research and screening costs.
What would affect this ETF?The ESG ETF, with its focus on U.S. companies adhering to high environmental, social, and governance standards, could benefit from growing investor interest in sustainable investing and strong performance in sectors like technology and consumer cyclical. However, it may face challenges from regulatory changes affecting ESG criteria or economic downturns impacting its top holdings in tech and financial sectors. Broader market trends and geopolitical factors could also influence its future performance.

ESG Top 10 Holdings

This ESG-focused fund leans heavily on U.S. tech, with Micron and Nvidia doing much of the heavy lifting as demand for AI chips keeps their shares rising. Apple and Broadcom, while still powerhouses, have been more mixed lately, adding stability rather than fireworks. Microsoft and Amazon, usually the stars of the show, are catching their breath, which has slightly cooled overall momentum. Outside tech, JPMorgan and Eli Lilly provide a steadier financial and healthcare backbone, but the story here is clear: U.S. mega-cap tech is steering the ship.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apple5.16%$6.76M$4.38T47.40%
79
Outperform
Microsoft4.95%$6.48M$2.82T-24.42%
79
Outperform
Nvidia4.70%$6.15M$5.10T44.72%
76
Outperform
Micron4.65%$6.09M$1.28T892.28%
79
Outperform
Broadcom4.62%$6.06M$1.96T54.52%
76
Outperform
JPMorgan Chase3.80%$4.98M$871.43B19.12%
72
Outperform
Eli Lilly & Co3.64%$4.77M$1.03T43.01%
72
Outperform
Amazon3.38%$4.43M$2.63T11.66%
71
Outperform
Berkshire Hathaway B3.01%$3.95M$1.06T0.19%
66
Neutral
Johnson & Johnson2.68%$3.50M$549.78B52.85%
78
Outperform

ESG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
171.82
Positive
100DMA
164.32
Positive
200DMA
160.15
Positive
Market Momentum
MACD
1.15
Positive
RSI
58.28
Neutral
STOCH
85.20
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ESG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 174.33, equal to the 50-day MA of 171.82, and equal to the 200-day MA of 160.15, indicating a bullish trend. The MACD of 1.15 indicates Positive momentum. The RSI at 58.28 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESG.

ESG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$131.69M0.32%
74
Outperform
$940.18M0.59%
69
Neutral
$936.56M0.15%
73
Outperform
$918.57M0.50%
76
Outperform
$876.23M1.30%
69
Neutral
$852.38M0.27%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESG
FlexShares Trust FlexShares STOXX US ESG Select Index Fund
176.06
30.59
21.03%
SYLD
Cambria Shareholder Yield ETF
FDMO
Fidelity Momentum Factor ETF
HLAL
Wahed FTSE USA Shariah ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
AUSF
Global X Adaptive U.S. Factor ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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