What Is the SUSC ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
This ETF invests in investment-grade corporate bonds issued by companies with strong ESG ratings, pursuing sustainability and bond income at the same time.
SubscribeWhat Is This ETF?
This is a passively managed ETF with an active-style twist: it tracks the US investment-grade corporate bond market while applying ESG criteria to select the portfolio's holdings. Rather than simply replicating an index, it screens for issuers with positive ESG characteristics, aiming to improve risk-adjusted returns over the long term.
It suits long-term investors who place importance on corporate ethics and sustainability when building a bond portfolio.
Launched by BlackRock in 2017, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | Bloomberg MSCI US Corporate ESG Focus Index |
| Management Style | Passive (ESG-screened) |
| Rebalancing Frequency | Monthly |
| Distribution Frequency | Monthly dividends |
| Expense Ratio | 0.18% |
The fund selects companies with high ESG scores from among investment-grade corporate bonds and excludes controversial sectors such as tobacco, weapons, and fossil fuels. Overall sector weights, duration, and other characteristics are kept similar to those of a broad corporate bond index, so the fund tracks market returns while reflecting ESG factors.
- Rigorous screening process based on MSCI ESG ratings
- Low tracking error relative to the broad corporate bond market
Size and Costs
Assets under management (AUM) stand at $1.3B, and the expense ratio is 0.18% per year.
Compared with general corporate bond ETFs such as LQD and USIG shown in the table, the expense ratio is at a similar level, though the application of ESG criteria may lead to some differences in sector composition. It aims for lower volatility than high-yield bond ETFs such as USHY and HYG.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeReturns are driven by US interest rate policy and the economic outlook. Thanks to its focus on investment-grade issuers, the fund has tended to show relative stability compared with high-yield bonds when concerns about an economic slowdown are rising.
As interest in socially responsible investing grows, the fund has seen steady inflows, and demand from institutional investors required to follow ESG guidelines has been consistently evident.
Strengths and Weaknesses
By combining strong credit quality with ESG values, the fund fits investors who want stable interest income and responsible investing at the same time.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
A comparable ESG bond alternative is Vanguard's VCEB, and if you want ESG integration on the equity side, you can also consider ESGU or SUSA. If you need broader bond market exposure, considering AGG or BND, which track the entire US bond market, is also a sound strategy.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | $103.21 | -0.0% | $28.9B | 0.14% | 4.89% | -8.3% |
 USHY | iShares Broad USD High Yield Corporate Bond ETF | $35.55 | +0.1% | $25.8B | 0.08% | 7.17% | -5.4% |
 USIG | iShares Broad USD Investment Grade Corporate Bond ETF | $49.09 | +0.0% | $17.8B | 0.04% | 4.96% | -6.7% |
 HYG | iShares iBoxx USD High Yield Corporate Bond ETF | $76.98 | +0.2% | $16.4B | 0.49% | 6.11% | -4.7% |
 SPHY | State Street SPDR Portfolio High Yield Bond ETF | $22.47 | +0.2% | $11.7B | 0.05% | 7.42% | -5.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| CRM | Salesforce Inc | 0.01% | $241.78 | -0.3% | $199.0B | 22.0 | 0.43% |
| ADP | Automatic Data Processing Inc | 0.01% | $294.50 | +0.6% | $116.7B | 26.9 | 2.38% |
 NBHC | National Bank Holdings Corp | 0.01% | $38.03 | +0.0% | $1.7B | 16.0 | 3.37% |
| LNG | Cheniere Energy Inc | 0.00% | $284.22 | +0.3% | $58.7B | 21.1 | 0.81% |
| NEE | NextEra Energy Inc | 0.00% | $78.28 | -0.7% | $163.3B | 17.6 | 3.17% |
Investor Checkpoints
These are the key items to review before investing in SUSC. It is important to approach the fund with a comprehensive understanding of how the interest rate environment and ESG screening criteria affect returns.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📈 Rate Outlook | The Fed's monetary policy and the trend in market interest rates | Monitoring |
| 🔍 ESG Criteria Changes | MSCI ESG index methodology and excluded holdings | Needs review |
| 💵 Fee Adequacy | Whether the expense ratio is reasonable compared with general corporate bond ETFs | Maintained |
| ⏱️ Investment Horizon | Fit with long-term ESG value realization and the pursuit of stable returns | Must confirm |
Keep in mind the risk of price declines from rising interest rates and the possibility of lower relative returns due to the exclusion of certain sectors. Even investment-grade bonds can see higher volatility during an economic crisis.
It is a core asset suited to investors who want stable corporate bond interest income while also considering corporate social responsibility. It has sufficient liquidity and structure to serve as an alternative to general corporate bond ETFs.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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