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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, earns a solid overall rating driven largely by high-quality tech leaders like Microsoft, Apple, and Nvidia, whose strong financial performance and growth in areas like cloud and AI support the fund’s long-term potential. Micron and Broadcom also add strength through their roles in AI and semiconductor markets, though premium valuations across several of these names and some weaker momentum in holdings like Berkshire Hathaway slightly temper the outlook. The main risk is the fund’s heavy exposure to large U.S. technology and AI-related companies, which could make it more sensitive to swings in that sector.
Positive Factors
Strong Recent Performance
The ETF has delivered solid gains so far this year and over the past few months, showing positive momentum.
Leading Technology and Blue-Chip Holdings
Top positions include well-known technology and large financial and healthcare companies, several of which have shown strong or steady performance and help drive returns.
Sector Diversification Across the U.S. Market
The fund spreads its investments across many sectors, including technology, financials, health care, consumer stocks, and energy, which helps reduce the impact if one area of the market struggles.
Negative Factors
Heavy Tilt Toward Technology
With a large share of assets in technology stocks, the ETF could be more sensitive to swings in that sector.
High U.S. Concentration
Almost all of the fund’s assets are invested in U.S. companies, offering very limited geographic diversification.
Mixed Performance Among Top Holdings
While several major positions have performed strongly, a few large holdings have recently lagged, which can dampen overall returns.

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

ESG Summary

The FlexShares STOXX US ESG Select Index Fund (ticker: ESG) is an ETF that tracks the STOXX USA ESG Select KPIs Index, focusing on U.S. companies with strong environmental, social, and governance practices. It holds many well-known names like Apple and Microsoft, and spreads investments across several sectors, with a big tilt toward technology and financial companies. Someone might invest in this ETF to get broad exposure to the U.S. stock market while supporting companies that aim to act responsibly. A key risk is that it can rise or fall with the overall stock market and is heavily influenced by tech stocks.
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 is powered by a tech-heavy lineup, with Microsoft and Nvidia doing much of the heavy lifting as their cloud and AI stories keep sentiment rising. Micron has been a standout, giving the portfolio an extra boost as memory and AI demand heat up. Apple and Broadcom, while still high-quality names, have been more mixed lately, occasionally losing steam and holding back returns. Beyond tech, steady contributions from JPMorgan and Exxon add balance, but the story here is clear: a U.S.-centric, ESG-screened bet on Big Tech and AI.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Microsoft6.11%$8.22M$3.68T-2.80%
79
Outperform
Apple5.40%$7.28M$4.85T41.95%
79
Outperform
Nvidia5.12%$6.89M$5.26T22.76%
76
Outperform
Micron4.52%$6.09M$1.10T520.28%
79
Outperform
Broadcom4.52%$6.08M$1.73T0.59%
76
Outperform
JPMorgan Chase3.94%$5.30M$946.93B16.07%
72
Outperform
Amazon3.48%$4.68M$2.77T12.55%
71
Outperform
Eli Lilly & Co3.26%$4.38M$1.05T47.70%
72
Outperform
Berkshire Hathaway B2.94%$3.97M$982.67B3.37%
66
Neutral
Exxon Mobil2.82%$3.80M$682.54B47.99%
74
Outperform

ESG Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
179.24
Negative
100DMA
175.40
Positive
200DMA
166.47
Positive
Market Momentum
MACD
0.10
Positive
RSI
43.27
Neutral
STOCH
14.03
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ESG, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 181.44, equal to the 50-day MA of 179.24, and equal to the 200-day MA of 166.47, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 14.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ESG.

ESG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$134.75M0.32%
74
Outperform
$940.78M0.50%
76
Outperform
$903.09M0.27%
71
Outperform
$900.22M0.15%
72
Outperform
$822.52M0.22%
61
Neutral
$792.91M0.45%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESG
FlexShares Trust FlexShares STOXX US ESG Select Index Fund
179.12
27.61
18.22%
HLAL
Wahed FTSE USA Shariah ETF
AUSF
Global X Adaptive U.S. Factor ETF
FDMO
Fidelity Momentum Factor ETF
AVTM
Avantis Total Equity Markets ETF
BGDV
Bahl & Gaynor Dividend 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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