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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 an overall rating that suggests it is a solid but not outstanding option, with both notable strengths and some areas of concern. Strong contributors like TechnipFMC (FTI) and ATI support the fund’s rating through robust financial performance, positive earnings calls, and generally supportive technical trends, while companies such as Albemarle (ALB) and Ovintiv (OVV) introduce some drag due to financial and valuation challenges despite pockets of positive momentum. A key risk factor is that several holdings show valuation and leverage concerns, which could increase volatility if market conditions worsen.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Leading Holdings Performing Well
Several of the largest positions, including companies like SanDisk, FTAI Aviation, and Royal Gold, have delivered strong gains that support the fund’s overall results.
Reasonable Costs for a Small-Cap ESG Fund
The expense ratio is relatively low for a specialized small-cap ESG strategy, helping investors keep more of their returns over time.
Negative Factors
Heavy U.S. Concentration
With almost all assets in U.S. stocks, the fund offers very limited geographic diversification and is highly tied to the U.S. market.
Exposure to Volatile Small-Cap Sectors
Large weights in areas like Industrials, Technology, and Consumer Cyclical can make the ETF more sensitive to economic slowdowns and market swings.
Some Top Holdings Are Lagging
A few key positions, such as Assurant and Lumentum Holdings, have shown weak recent performance, which can drag on the fund if the trend continues.

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

ESML Summary

ESML is the iShares ESG Aware MSCI USA Small-Cap ETF, which tracks the MSCI USA Small Cap Extended ESG Focus Index. It invests in many smaller U.S. companies that meet environmental, social, and governance (ESG) standards. The fund spreads money across sectors like industrials, technology, and health care, and holds names such as SanDisk and US Foods. Someone might invest in ESML for growth potential from small, innovative companies while staying aligned with sustainability values. A key risk is that small-cap stocks can be more volatile, so the price can move up and down more than the overall 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’s story is about many small engines rather than one star driver. Tech name Akamai and energy player Ovintiv have been rising, giving the fund a lift alongside steady contributors like ATI and XPO, which are benefiting from industrial and logistics strength. On the softer side, Assurant and US Foods have been lagging a bit, acting as mild brakes rather than full-on drags. With a clear tilt toward U.S. industrials, tech, and energy—and no single stock dominating—performance is driven by broad small-cap momentum rather than headline names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
SanDisk Corp1.50%$31.34M$90.90B1157.56%
55
Neutral
TechnipFMC0.67%$13.98M$28.48B128.32%
80
Outperform
US Foods Holding0.57%$11.92M$20.04B40.80%
74
Outperform
Ovintiv0.55%$11.54MC$24.45B47.04%
60
Neutral
Assurant0.44%$9.16M$10.60B3.38%
73
Outperform
Janus Henderson Group0.44%$9.14M$7.92B42.80%
73
Outperform
XPO0.42%$8.77M$22.15B76.53%
70
Outperform
Akamai0.40%$8.35M$16.59B43.04%
73
Outperform
Royal Gold0.40%$8.33M$20.15B46.46%
78
Outperform
Albemarle0.40%$8.32M$21.15B148.58%
58
Neutral

ESML Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
48.59
Negative
100DMA
47.25
Negative
200DMA
45.23
Positive
Market Momentum
MACD
-0.59
Positive
RSI
38.06
Neutral
STOCH
58.90
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ESML, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 47.46, equal to the 50-day MA of 48.59, and equal to the 200-day MA of 45.23, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 38.06 is Neutral, neither overbought nor oversold. The STOCH value of 58.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESML.

ESML Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.13B0.17%
67
Neutral
$9.33B0.25%
67
Neutral
$4.09B0.28%
65
Neutral
$3.36B0.07%
66
Neutral
$3.27B0.15%
67
Neutral
$3.24B0.59%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESML
iShares ESG Aware MSCI USA Small-Cap ETF
46.07
8.09
21.30%
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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