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USCA - ETF AI Analysis

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USCA

Xtrackers MSCI USA Climate Action Equity ETF (USCA)

Rating:74Outperform
Price Target:
USCA, the Xtrackers MSCI USA Climate Action Equity ETF, has a solid overall rating driven mainly by large positions in high-quality tech leaders like Apple, Microsoft, and Alphabet, which benefit from strong financial performance, profitable operations, and long-term growth in cloud and AI. The fund’s rating is held back somewhat by holdings such as Tesla and Eli Lilly, where high valuations, leverage, or cash flow challenges introduce more risk, and by a notable concentration in major U.S. technology and AI-focused companies, which can increase volatility if that sector faces a downturn.
Positive Factors
Strong Recent Performance
The ETF has delivered steady gains over the past year-to-date, three-month, and one-month periods, showing solid recent momentum.
Leading Growth Companies in Top Holdings
Several of the largest positions, such as Apple, Nvidia, Amazon, Alphabet, Broadcom, and Eli Lilly, have shown strong performance, helping drive the fund’s returns.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of their returns over time.
Negative Factors
High Concentration in a Few Stocks
A large share of the portfolio is tied up in a small number of mega-cap names, which increases the impact if any one of them stumbles.
Heavy Tilt Toward Technology
With a big weighting in the technology sector, the ETF is more exposed to swings in tech stocks than a more evenly balanced fund.
Limited International Diversification
Almost all of the ETF’s assets are invested in U.S. companies, offering little geographic diversification for investors seeking global exposure.

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

USCA Summary

USCA is an ETF that follows the MSCI USA Climate Action Index, focusing on U.S. companies taking meaningful steps to cut carbon emissions and improve energy efficiency. It holds many large, familiar names like Apple and Microsoft, along with other major tech and consumer brands, giving investors broad exposure to the U.S. stock market with a climate-friendly tilt. Someone might invest in USCA to seek long-term growth while supporting companies that are working toward a lower-carbon future. A key risk is that it is heavily tilted toward technology and U.S. stocks, so its value can rise and fall sharply with those markets.
How much will it cost me?The Xtrackers MSCI USA Climate Action Equity ETF (USCA) has an expense ratio of 0.07%, which means you’ll pay $0.70 per year for every $1,000 invested. This is lower than average because it is passively managed, tracking an index rather than relying on active stock picking.
What would affect this ETF?The USCA ETF could benefit from growing interest in sustainable investing and increased government support for climate initiatives, which may drive demand for companies focused on reducing carbon footprints. However, it may face challenges if regulatory changes or economic slowdowns negatively impact the technology and consumer sectors, which make up a significant portion of its holdings. Additionally, shifts in interest rates could affect the financial sector, another key area of exposure for this ETF.

USCA Top 10 Holdings

USCA is heavily steered by U.S. Big Tech, with Apple and Nvidia doing most of the heavy lifting as they continue to rise on the back of AI and services growth. Microsoft and Amazon, however, look a bit tired, with more mixed to lagging moves that keep the fund from fully capitalizing on tech’s momentum. Alphabet sits in the middle lane—steady but not spectacular—while Tesla is clearly losing steam and dragging on returns. Overall, this is a U.S.-only, tech-tilted climate-action play with a few standout winners offsetting some notable laggards.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia9.16%$325.73M$5.42T19.49%
76
Outperform
Apple8.25%$293.22M$4.57T35.69%
79
Outperform
Microsoft6.51%$231.46M$3.71T-3.01%
79
Outperform
Amazon4.91%$174.40M$2.96T25.66%
71
Outperform
Alphabet Class A3.80%$134.92M$4.33T77.87%
85
Outperform
Broadcom3.47%$123.24M$2.04T38.99%
76
Outperform
Alphabet Class C3.00%$106.70M$4.33T76.48%
82
Outperform
Meta Platforms2.38%$84.56M$1.51T-22.32%
76
Outperform
Eli Lilly & Co1.80%$64.15M$1.12T93.94%
72
Outperform
Tesla1.70%$60.27M$1.30T-2.40%
73
Outperform

USCA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
44.20
Positive
100DMA
43.15
Positive
200DMA
42.15
Positive
Market Momentum
MACD
0.55
Negative
RSI
64.72
Neutral
STOCH
54.94
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For USCA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 44.77, equal to the 50-day MA of 44.20, and equal to the 200-day MA of 42.15, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 64.72 is Neutral, neither overbought nor oversold. The STOCH value of 54.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USCA.

USCA Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$3.57B0.07%
74
Outperform
$6.75B0.57%
74
Outperform
$2.89B0.08%
75
Outperform
$2.55B0.10%
74
Outperform
$1.52B0.75%
65
Neutral
$1.24B0.15%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
USCA
Xtrackers MSCI USA Climate Action Equity ETF
45.93
6.37
16.10%
THRO
Ishares U.S. Thematic Rotation Active Etf
USCL
iShares Climate Conscious & Transition MSCI USA ETF
PABU
iShares Paris-Aligned Climate MSCI USA ETF
PWRD
Tcw Transform Systems Etf
LCTU
BlackRock U.S. Carbon Transition Readiness 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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