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ESML - ETF AI Analysis

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ESML

iShares ESG Aware MSCI USA Small-Cap ETF (ESML)

Rating:66Neutral
Price Target:
ESML, the iShares ESG Aware MSCI USA Small-Cap ETF, has a solid overall rating that reflects a mix of strong small-cap performers and a few more challenged names. Standout holdings like ATI, nVent Electric, Woodward, and Carpenter Technology support the fund’s quality through strong financial performance, positive earnings calls, and generally favorable outlooks, even if some look a bit expensive. On the other hand, weaker contributors such as SanDisk, Ovintiv, and Moderna face financial or valuation pressures, and the fund’s focus on smaller U.S. companies means investors should be aware of higher volatility and sector-specific risks within the small-cap space.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, showing solid momentum in its recent returns.
Broad Sector Diversification
Holdings are spread across many sectors, which helps reduce the impact if any one industry runs into trouble.
Low Expense Ratio
The fund’s relatively low ongoing fee means more of the investment’s growth can stay in investors’ pockets over time.
Negative Factors
Heavy U.S. Concentration
With almost all assets in U.S. companies, the ETF offers limited diversification across global markets.
Small-Cap Volatility
Because it focuses on smaller companies, the fund may experience larger price swings than ETFs holding bigger, more established firms.
Top Holding Dominance
The largest position has a much higher weight than the rest of the top holdings, increasing the fund’s sensitivity to that single stock’s performance.

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

ESML Summary

ESML is an ETF that follows the MSCI USA Small Cap Extended ESG Focus Index, investing in smaller U.S. companies that meet environmental, social, and governance (ESG) standards. It spreads money across many industries, including technology, health care, and industrials, with holdings like SanDisk and US Foods. Someone might invest in ESML to tap into the growth potential of small companies while supporting businesses that aim to act responsibly. A key risk is that small-cap stocks can be more volatile than larger, more established companies, so the value of this ETF can go up and down sharply with the market.
How much will it cost me?The iShares ESG Aware MSCI USA Small-Cap ETF (ESML) has an expense ratio of 0.17%, which means you’ll pay $1.70 per year for every $1,000 invested. This is lower than average for actively managed funds because ESML is passively managed, tracking an index of small-cap companies with ESG criteria.
What would affect this ETF?The ESML ETF could benefit from increased interest in ESG-focused investments and the growth potential of U.S. small-cap companies, especially in sectors like technology and industrials, which are key drivers of innovation. However, it may face challenges from economic downturns, rising interest rates that impact small-cap firms' borrowing costs, or regulatory changes affecting ESG criteria. Its heavy exposure to the U.S. market also makes it sensitive to domestic economic conditions.

ESML Top 10 Holdings

ESML leans heavily into U.S. industrial and tech-focused small caps, with names like Carpenter Technology, ATI, and Sterling Infrastructure acting as key engines of performance thanks to their rising momentum and upbeat earnings stories. Ovintiv adds an energy tilt that’s been supportive, while SanDisk, despite solid longer-term gains, has shown more mixed and recently lagging behavior that can tug on returns. Real estate exposure through Jones Lang Lasalle is more of a steady, if slightly soft, contributor. Overall, the fund is U.S.-centric, cyclical, and driven by industrial strength.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
SanDisk Corp2.74%$78.52M$179.90B2929.94%
55
Neutral
US Foods Holding0.54%$15.41M$22.15B19.58%
74
Outperform
Assurant0.50%$14.26M$13.83B49.51%
73
Outperform
Ovintiv0.43%$12.32M$17.21B57.22%
60
Neutral
ATI0.42%$11.94M$25.58B155.31%
78
Outperform
Carpenter Technology0.41%$11.80M$25.82B114.81%
75
Outperform
nVent Electric0.41%$11.61M$24.88B76.16%
76
Outperform
Jones Lang Lasalle0.36%$10.18M$16.33B35.36%
79
Outperform
Woodward0.33%$9.42M$21.30B39.90%
79
Outperform
Akamai0.31%$8.92M$16.75B56.13%
73
Outperform

ESML Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
54.11
Positive
100DMA
51.92
Positive
200DMA
49.47
Positive
Market Momentum
MACD
0.22
Negative
RSI
55.97
Neutral
STOCH
78.23
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ESML, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 54.25, equal to the 50-day MA of 54.11, and equal to the 200-day MA of 49.47, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 78.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESML.

ESML Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.91B0.17%
66
Neutral
$9.13B0.25%
67
Neutral
$6.05B0.28%
64
Neutral
$4.23B0.07%
66
Neutral
$4.10B0.15%
67
Neutral
$3.68B0.59%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESML
iShares ESG Aware MSCI USA Small-Cap ETF
54.99
13.52
32.60%
FNDA
Schwab Fundamental US Small Co. Index ETF
FESM
Fidelity Enhanced Small Cap ETF
VIOO
Vanguard S&P Small-Cap 600 ETF
SMLF
iShares MSCI USA Small-Cap Multifactor ETF
CALF
Pacer US Small Cap Cash Cows 100 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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