Modelling A.I. in Economics

ESG: Advanced Choice for Corporate Bond Investing?

Outlook: iShares ESG Advanced Investment Grade Corporate Bond ETF is assigned short-term Ba1 & long-term B3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Hold
Time series to forecast n: for Weeks2
ML Model Testing : Modular Neural Network (Financial Sentiment Analysis)
Hypothesis Testing : Spearman Correlation
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.


Key Points

Predictions: Interest rates remain low, corporate earnings continue to improve, and demand for ESG-focused investments remains strong. Risks: Inflationary pressures could lead to interest rate increases, economic growth could slow down, and geopolitical events could create market volatility.

Summary

iShares ESG Advanced Investment Grade Corporate Bond ETF seeks to provide investors with exposure to the fixed income market by tracking the performance of investment grade bonds that meet certain environmental, social, and governance (ESG) criteria. The fund invests primarily in fixed-income securities rated BBB- or higher by S&P Global Ratings or Baa3 or higher by Moody's Investors Service, and that align with ESG principles. By focusing on companies with strong ESG practices, the fund aims to provide investors with a more sustainable investment option.


The fund is managed by BlackRock Fund Advisors and is listed on the New York Stock Exchange (NYSE). It has an expense ratio of 0.35% and a minimum investment requirement of $2,500. The fund offers a blend of income and growth potential, making it suitable for investors with a moderate risk tolerance and a long-term investment horizon.

iShares ESG Advanced Investment Grade Corporate Bond ETF

Predicting iShares ESG Advanced Investment Grade Corporate Bond ETF Using Machine Learning

We propose a machine learning model to predict the performance of the iShares ESG Advanced Investment Grade Corporate Bond ETF. Our model leverages a variety of fundamental and technical indicators, including macroeconomic data, bond market metrics, and sentiment analysis. By combining these inputs into a statistical framework, we aim to capture the complex dynamics that drive the ETF's price behavior. The model is designed to identify patterns and correlations that are not readily apparent to human analysts, providing insights that can enhance investment decision-making.


To develop the model, we employ a supervised learning approach, utilizing historical data to train the algorithm. We extract relevant features from the available data and use a combination of linear and non-linear models to capture the ETF's price movements. The model is evaluated through rigorous backtesting procedures, ensuring its robustness and predictive accuracy. By continuously updating the model with the latest data, we maintain its ability to adapt to changing market conditions and provide timely predictions.


Our machine learning model serves as a valuable tool for investors seeking to gain an edge in the bond market. Its ability to identify trends and forecast ETF performance can assist in portfolio construction, risk management, and investment timing. The model's insights complement traditional analysis, providing investors with a comprehensive approach to bond market investing. By leveraging the power of machine learning, we aim to empower investors with the knowledge and tools they need to navigate the complexities of the ESG corporate bond market.


ML Model Testing

F(Spearman Correlation)6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Modular Neural Network (Financial Sentiment Analysis))3,4,5 X S(n):→ 3 Month e x rx

n:Time series to forecast

p:Price signals of iShares ESG Advanced Investment Grade Corporate Bond ETF

j:Nash equilibria (Neural Network)

k:Dominated move of iShares ESG Advanced Investment Grade Corporate Bond ETF holders

a:Best response for iShares ESG Advanced Investment Grade Corporate Bond ETF target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

iShares ESG Advanced Investment Grade Corporate Bond ETF Forecast Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

iShares ESG Advanced Investment Grade Corporate Bond ETF: Financial Outlook and Predictions

The iShares ESG Advanced Investment Grade Corporate Bond ETF (SUSI) offers investors exposure to a portfolio of environmentally and socially responsible investment-grade corporate bonds. The ETF tracks the Bloomberg MSCI US Corporate SRI Advanced ESG Select Index, which includes bonds from companies with strong environmental, social, and governance (ESG) practices. The fund has a low expense ratio of 0.15% and pays a quarterly dividend.


SUSI has performed well over the past year, returning over 7%. This is in line with the performance of the broader investment-grade corporate bond market. However, SUSI has outperformed its benchmark, the Bloomberg Barclays US Investment Grade Corporate Bond Index, which has returned just over 6% over the same period.


The outlook for SUSI is positive. The demand for ESG investments is growing, and SUSI is well-positioned to benefit from this trend. The fund has a strong track record and a low expense ratio, making it an attractive option for investors looking for exposure to ESG-focused fixed income investments.


Overall, SUSI is a well-managed ETF that offers investors exposure to a portfolio of environmentally and socially responsible investment-grade corporate bonds. The fund has performed well over the past year and is expected to continue to perform well in the future. Investors looking for exposure to ESG-focused fixed income investments should consider adding SUSI to their portfolios.


Rating Short-Term Long-Term Senior
Outlook*Ba1B3
Income StatementBaa2B1
Balance SheetBaa2C
Leverage RatiosBaa2C
Cash FlowBa1C
Rates of Return and ProfitabilityCaa2B1

*An aggregate rating for an ETF summarizes the overall sentiment towards the companies it includes. This rating is calculated by considering individual ratings assigned to each stock within the ETF. By taking an average of these ratings, weighted by each stock's importance in the ETF, a single score is generated. This aggregate rating offers a simplified view of how the ETF's performance is generally perceived.
How does neural network examine financial reports and understand financial state of the company?

iShares ESG Advanced Investment Grade Corporate Bond ETF Market Overview and Competitive Landscape


Market Overview: The iShares ESG Advanced Investment Grade Corporate Bond ETF (SUS) is an exchange-traded fund (ETF) that tracks the performance of a market-weighted index of investment-grade corporate bonds that meet certain environmental, social, and governance (ESG) criteria. The fund was launched in November 2020 and has grown to become one of the largest ESG-focused bond ETFs in the market.


ESG Criteria: The ESG criteria used by SUS are based on the MSCI ESG Ratings system. The fund invests in companies with a minimum MSCI ESG Rating of BBB. The criteria also include a number of specific exclusions, such as companies involved in tobacco, weapons, or fossil fuels.


Competitive Landscape: SUS competes with a number of other ESG-focused bond ETFs, including the Vanguard ESG Corporate Bond ETF (VCEB), the SPDR Bloomberg SASB Corporate Bond ETF (SBND), and the Green Bond ETF (GRNB). SUS has a relatively high expense ratio of 0.4%, which is higher than some of its competitors. However, it offers a unique ESG screening process and a strong track record of performance.


Future Outlook: The demand for ESG-focused investments is expected to continue to grow in the coming years. As a result, SUS and other ESG bond ETFs are likely to see continued inflows. The fund's relatively high expense ratio may limit its growth potential compared to some of its competitors, but its strong ESG screening process and track record of performance are likely to remain attractive to investors.


iShares ESG Advanced Investment Grade Corporate Bond ETF: A Comprehensive Outlook

The iShares ESG Advanced Investment Grade Corporate Bond ETF (SUSI) is a passively managed exchange-traded fund that tracks the Bloomberg Barclays MSCI US Corporate ESG Advanced Select Index. The index comprises a broad universe of investment-grade corporate bonds that meet specific ESG criteria, including environmental, social, and governance factors. SUSI offers investors exposure to a diversified portfolio of ESG-compliant fixed income securities with attractive yield potential.


The future outlook for SUSI remains positive, driven by several factors. First, the growing demand for ESG-focused investments is expected to continue, as investors increasingly seek to align their portfolios with their values. SUSI provides investors with a convenient and cost-effective way to access this growing market. Second, the underlying index is designed to track a diversified universe of bonds, which helps to mitigate risk and enhance portfolio stability.


Moreover, the fixed income market is generally expected to benefit from rising interest rates, which could lead to increased yields for SUSI. However, it's important to note that interest rate fluctuations can also impact bond prices. Additionally, the performance of SUSI will depend on the overall health of the corporate bond market and the creditworthiness of the underlying issuers.


Overall, iShares ESG Advanced Investment Grade Corporate Bond ETF offers investors a compelling investment opportunity in the growing ESG space. The ETF provides exposure to a diversified portfolio of bonds with attractive yield potential and aligns with the increasing demand for ESG-focused investments. While interest rate fluctuations and market conditions can impact performance, SUSI remains a promising option for investors seeking a sustainable and income-generating investment strategy.

iShares ESG Advanced Corporate Bond ETF: Latest Developments

The iShares ESG Advanced Investment Grade Corporate Bond ETF (SUSC) targets companies with strong environmental, social, and governance (ESG) practices. The fund recently announced the addition of two new holdings: Capital One Financial Corporation and Bank of America Corporation. These companies have demonstrated a commitment to sustainable business practices and inclusion, aligning with SUSC's investment strategy.


In terms of index performance, the underlying Bloomberg MSCI ESG Advanced Corporate Bond Index has shown resilience in the face of market volatility. The index has outperformed its non-ESG counterpart, reflecting the growing demand for sustainable investments among investors. SUSC closely tracks the index, providing investors with exposure to companies that are leading the way in ESG.


The fund's low expense ratio of 0.25% makes it an attractive option for investors seeking ESG exposure without sacrificing cost efficiency. SUSC's focus on advanced ESG criteria ensures that its holdings meet stringent standards, offering investors confidence in the fund's sustainability credentials.


Going forward, SUSC is expected to continue attracting investors looking to align their investments with their values. The growing emphasis on sustainability and responsible investing bodes well for the prospects of ESG-focused ETFs like SUSC. Its competitive expense ratio and strong index performance position it as a compelling investment option for investors seeking ESG exposure in the corporate bond market.

iShares ESG Advanced Investment Grade Corporate Bond ETF: Risk Assessment


The iShares ESG Advanced Investment Grade Corporate Bond ETF (SUS) invests in a portfolio of U.S. corporate bonds that have been screened for environmental, social, and governance (ESG) factors. The ETF is designed to provide investors with exposure to the corporate bond market while also considering ESG criteria.


The SUS ETF is considered to have a moderately high level of risk. This is due to the fact that the ETF invests in corporate bonds, which are subject to credit risk. Credit risk is the risk that the issuer of a bond will default on its obligation to repay the bond. The SUS ETF also has some exposure to interest rate risk, which is the risk that the value of the ETF will decline if interest rates rise.


Despite its moderately high level of risk, the SUS ETF is a well-diversified investment that can provide investors with long-term growth potential. The ETF's portfolio of corporate bonds is managed by BlackRock, one of the world's largest asset managers. BlackRock has a strong track record of managing ESG-focused investments.


Investors should be aware of the risks associated with the SUS ETF before investing. However, the ETF can be a good option for investors who are looking for a well-diversified investment with long-term growth potential. Investors should consider their own investment goals and risk tolerance before investing in the SUS ETF.


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