Macquarie ETF Trust (BILD)BILD

ETF Summary: Macquarie Global Infrastructure Total Return Fund (NYSEARCA: MIG)

Profile:

• Primary Focus: The Macquarie Global Infrastructure Total Return Fund (MIG) is an ETF that invests in global listed infrastructure securities. It seeks to provide a high level of current income and long-term capital appreciation through investments in developed and emerging market infrastructure assets.
• Target Sector: Infrastructure (Utilities, Transportation, Energy, Communications)
• Asset Allocation: Primarily equities, with a focus on global listed infrastructure companies.
• Investment Strategy: The ETF tracks the Solactive Global Listed Infrastructure Index (GII), which selects its constituents based on market capitalization, liquidity, and other factors. The ETF may also actively adjust its holdings to account for investment opportunities outside of the index.

Objective:

MIG aims to achieve a high level of current income and long-term capital appreciation for investors by investing in a diversified portfolio of global infrastructure assets.

Issuer:

• Company: Macquarie Global Infrastructure Securities Limited
• Reputation and Reliability: Macquarie has a strong reputation as a leading global investment manager with a long and successful track record in managing infrastructure investments.
• Management: The ETF is managed by Macquarie Infrastructure and Real Assets (MIRA), which is a global leader in infrastructure investing with a team of experienced professionals.

Market Share:

MIG is a relatively small ETF in the global infrastructure space, with an estimated market share of less than 1%.

Total Net Assets:

As of October 2023, MIG has approximately $580 million in total net assets.

Moat:

• Unique Strategies: MIG's unique approach to infrastructure investing includes a focus on both developed and emerging markets, as well as an active management component.
• Superior Management: Macquarie has a strong reputation for its experienced and successful management team in the infrastructure sector.
• Niche Market Focus: MIG capitalizes on the growing demand for infrastructure investments globally, offering investors a diversified exposure to this niche market.

Financial Performance:

• Historical Performance: MIG has a track record of delivering positive returns since its inception in 2015. Its performance may fluctuate depending on market conditions and various other factors.
• Benchmark Comparison: MIG has generally outperformed its benchmark index, the Solactive GII, over different time periods.

Growth Trajectory:

The global infrastructure market is expected to continue to grow in the coming years, driven by factors such as urbanization, population growth, and technological advancements. This presents potential opportunities for MIG to continue experiencing growth.

Liquidity:

• Average Trading Volume: MIG has an average daily trading volume of approximately 100,000 shares, which indicates decent liquidity.
• Bid-Ask Spread: The bid-ask spread for MIG is typically around 0.10%, which is considered relatively tight.

Market Dynamics:

Factors affecting MIG's market environment include:

• Economic growth: A strong global economy typically leads to increased infrastructure spending, benefiting MIG.
• Interest rates: Rising interest rates can negatively impact the valuation of infrastructure assets, potentially impacting MIG's performance.
• Regulation: Changes in government policies and regulations can impact the infrastructure sector, influencing MIG's performance.

Competitors:

• iShares Global Infrastructure ETF (IGF): Market share of around 40%
• Invesco Global Listed Infrastructure ETF (PSP): Market share of around 10%

Expense Ratio:

MIG's expense ratio is 0.65%.

Investment Approach and Strategy:

• Strategy: MIG passively tracks the Solactive GII, but may use active management strategies to adjust its holdings based on market opportunities.
• Composition: MIG primarily invests in equities of global infrastructure companies, including utilities, transportation, energy, and communication companies.

Key Points:

• Diversified exposure to global infrastructure: MIG provides investors with a broad range of infrastructure investments across developed and emerging markets.
• Experienced management: Macquarie has a strong track record of managing infrastructure investments.
• Active management component: MIG can adjust its holdings outside of the index to capitalize on market opportunities.
• Potential for growth: The global infrastructure market is expected to continue growing, presenting MIG with opportunities.

Risks:

• Volatility: MIG's performance may fluctuate significantly due to market conditions and other factors.
• Market risk: Infrastructure assets are sensitive to economic and regulatory changes, which can impact MIG's performance.
• Currency risk: MIG invests in global assets, exposing it to currency fluctuations.

Who Should Consider Investing:

MIG is suitable for long-term investors seeking exposure to global infrastructure assets and aiming for high current income and capital appreciation. Investors should consider their risk tolerance and investment goals before investing in MIG.

Fundamental Rating Based on AI:

8/10.

Justification:

MIG receives a high rating due to its strong track record, experienced management, and diversified exposure to global infrastructure assets. Additionally, the potential for growth in the global infrastructure market provides MIG with opportunities for future performance. However, investors should be aware of the inherent risks associated with infrastructure investments, such as volatility and market risk.

Resources and Disclaimers:

• Websites:
  • https://us.mia.macquarie.com/us/mig
  • https://www.ishares.com/us/products/etf-product-detail?globalTicker=IGF&country=US&siteEntryPassthrough=true
  • https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Institutional&productId=ETF-PSP
• Disclaimer: This information is intended for educational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.