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ESML - ETF AI Analysis

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ESML

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

Rating:67Neutral
Price Target:
ESML, the iShares ESG Aware MSCI USA Small-Cap ETF, has a solid overall rating driven by strong contributors like TechnipFMC, US Foods, Assurant, Janus Henderson, Akamai, and Royal Gold, which all benefit from healthy financial performance, positive earnings commentary, and generally supportive technical trends. The fund’s rating is held back somewhat by weaker names such as SanDisk, Ovintiv, and Albemarle, where financial and valuation challenges and, in some cases, bearish or mixed technical signals introduce more risk. A key risk factor is that several holdings face valuation and leverage concerns, which could increase volatility if market conditions worsen.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating positive recent momentum.
Broad Sector Diversification
Holdings are spread across many sectors such as industrials, technology, financials, and health care, which helps reduce the impact if any one industry struggles.
Low Expense Ratio for a Small-Cap ESG Fund
The fund’s relatively low ongoing fee means less of your return is eaten up by costs compared with many specialized small‑cap or ESG funds.
Negative Factors
Heavy U.S. Concentration
Almost all assets are invested in U.S. companies, offering very little geographic diversification outside the United States.
Small-Cap Volatility Risk
Because the ETF focuses on smaller companies, its share price can be more sensitive to market swings and economic slowdowns than large‑cap funds.
Some Mixed Performance Among Top Holdings
While several top positions have delivered strong gains, at least one key holding has shown weak performance, which can drag on overall returns.

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

ESML Summary

ESML is the iShares ESG Aware MSCI USA Small-Cap ETF, which follows the MSCI USA Small Cap Extended ESG Focus Index. It invests mainly in smaller U.S. companies that meet certain environmental, social, and governance (ESG) standards. The fund holds a wide mix of sectors, including industrials, technology, and health care, with names like SanDisk and US Foods among its top holdings. Someone might invest in ESML to seek long-term growth from innovative smaller companies while aligning with sustainability values. A key risk is that small-cap stocks can be more volatile and can go up and down more sharply than larger companies.
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’s story is all about U.S. small caps with an ESG twist, and its leaders are doing much of the heavy lifting. SanDisk is rising on strong earnings buzz, while Fabrinet and XPO are also pushing the fund forward with solid momentum, even if valuations look a bit rich. On the flip side, Assurant has been more of a steady but slightly lagging passenger, and Royal Gold’s mixed recent stretch has added some bumps. Sector-wise, the fund leans into industrials and tech, with performance driven by a broad, domestically focused mix rather than a single star name.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
SanDisk Corp2.35%$54.32M$146.11B3216.39%
55
Neutral
TechnipFMC0.64%$14.73M$29.91B161.56%
80
Outperform
US Foods Holding0.52%$11.92M$20.53B40.50%
74
Outperform
Ovintiv0.46%$10.57MC$21.53B62.68%
60
Neutral
XPO0.44%$10.18M$26.26B125.57%
70
Outperform
Assurant0.43%$9.94M$11.44B21.02%
73
Outperform
Fabrinet0.40%$9.28M$25.80B237.27%
78
Outperform
Albemarle0.40%$9.23M$22.19B240.78%
58
Neutral
Janus Henderson Group0.39%$9.12M$7.94B55.55%
73
Outperform
nVent Electric0.38%$8.74M$22.99B159.73%
76
Outperform

ESML Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
48.73
Positive
100DMA
48.25
Positive
200DMA
46.10
Positive
Market Momentum
MACD
0.93
Negative
RSI
66.99
Neutral
STOCH
64.80
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 49.51, equal to the 50-day MA of 48.73, and equal to the 200-day MA of 46.10, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 66.99 is Neutral, neither overbought nor oversold. The STOCH value of 64.80 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
$2.31B0.17%
67
Neutral
$4.75B0.28%
65
Neutral
$3.73B0.07%
66
Neutral
$3.60B0.15%
67
Neutral
$3.41B0.59%
68
Neutral
$2.67B0.36%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESML
iShares ESG Aware MSCI USA Small-Cap ETF
50.73
13.52
36.33%
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
XSMO
Invesco S&P SmallCap Momentum 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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