USCA - ETF AI Analysis

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Xtrackers MSCI USA Climate Action Equity ETF (USCA)

Rating:73Outperform

Price Target:―

The Xtrackers MSCI USA Climate Action Equity ETF (USCA) benefits from strong contributions by top holdings like Microsoft and Nvidia, which are well-positioned for long-term growth due to their strategic focus on AI and cloud technologies. However, the fund's overall rating is slightly tempered by weaker performance from holdings such as JPMorgan Chase and Eli Lilly, which face challenges like cash flow management and high leverage. Investors should also note the ETF's concentration in high-growth tech stocks, which could increase volatility during market downturns.

Positive Factors

Strong Top Holdings

Several key holdings, including Nvidia, Microsoft, and Alphabet, have delivered strong year-to-date performance, boosting the ETF’s overall returns.

Low Expense Ratio

The ETF charges a very low expense ratio, making it cost-effective compared to similar funds.

Sector Diversification

The ETF is spread across multiple sectors, with significant exposure to technology, communication services, and financials, reducing reliance on any single industry.

Negative Factors

High Geographic Concentration

The ETF is heavily focused on U.S. companies, with minimal exposure to international markets, limiting global diversification.

Overweight in Technology

Nearly 30% of the portfolio is allocated to the technology sector, increasing vulnerability to downturns in this industry.

Mixed Performance Among Holdings

While some top holdings have performed well, others like Amazon and Eli Lilly have shown weaker year-to-date performance, potentially dragging on overall returns.

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

AUM2.94B

RegionNorth America

Expense Ratio0.07%

Beta0.99

IssuerXtrackers

Inception DateApr 04, 2023

Dividend Yield1.12%

Asset ClassEquity

Index TrackedMSCI USA Climate Action Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume17,227

30 Day Avg. Volume21,326

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

49.36

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering275

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

USCA Summary

The Xtrackers MSCI USA Climate Action Equity ETF (USCA) is an investment fund that focuses on U.S. companies committed to reducing carbon emissions and promoting sustainability. It follows the MSCI USA Climate Action Index, which includes well-known companies like Nvidia and Microsoft. This ETF is ideal for investors who want to support environmentally responsible businesses while diversifying their portfolio with U.S. stocks. However, new investors should be aware that the ETF’s performance can fluctuate with the overall stock market, especially since it has significant exposure to the technology sector.

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

The Xtrackers MSCI USA Climate Action Equity ETF is leaning heavily on tech giants like Microsoft and Nvidia, which have shown mixed performance recently, with Nvidia’s AI-driven growth offset by inventory challenges. Tesla is a bright spot, accelerating with strong momentum, while Meta Platforms has stumbled, weighed down by expense concerns despite its focus on AI. The fund’s tech-heavy positioning, making up nearly a third of its portfolio, underscores its commitment to innovation, but it’s not all about Silicon Valley—names like JPMorgan and Eli Lilly add diversity, offering steady contributions from finance and healthcare.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	5.48%	$160.19M	$4.60T	36.15%	76 Outperform
MSFT	Microsoft	5.36%	$156.93M	$3.59T	14.12%	79 Outperform
AMZN	Amazon	4.72%	$137.98M	$2.58T	12.49%	71 Outperform
AVGO	Broadcom	4.64%	$135.82M	$1.63T	48.22%	76 Outperform
META	Meta Platforms	3.56%	$104.17M	$1.64T	4.90%	76 Outperform
TSLA	Tesla	3.13%	$91.47M	$1.43T	10.40%	73 Outperform
GOOGL	Alphabet Class A	2.88%	$84.19M	$3.89T	69.46%	85 Outperform
GOOG	Alphabet Class C	2.43%	$71.04M	$3.89T	66.85%	82 Outperform
JPM	JPMorgan Chase	2.30%	$67.36M	$890.15B	37.49%	72 Outperform
LLY	Eli Lilly & Co	2.22%	$64.84M	$1.05T	35.66%	72 Outperform

USCA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

41.69

Positive

100DMA

41.15

Positive

200DMA

38.99

Positive

Market Momentum

MACD

0.16

Negative

RSI

55.94

Neutral

STOCH

84.79

Negative

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 41.96, equal to the 50-day MA of 41.69, and equal to the 200-day MA of 38.99, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 84.79 is Negative, 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
USCA	―	―	$2.94B	0.07%	―
THRO	―	―	$7.22B	0.57%	―
FDN	―	―	$6.55B	0.49%	―
USCL	―	―	$2.32B	0.08%	―
PABU	―	―	$2.27B	0.10%	―
LCTU	―	―	$1.44B	0.15%	―

Performance Comparison

USCA

Xtrackers MSCI USA Climate Action Equity ETF

42.21

5.89

16.22%

THRO

Ishares U.S. Thematic Rotation Active Etf

―

FDN

First Trust Dow Jones Internet Index Fund

―

USCL

iShares Climate Conscious & Transition MSCI USA ETF

―

PABU

iShares Paris-Aligned Climate MSCI USA 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.

Disclaimer

This 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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