IndexIQ ETF Trust - IQ Engender Equality ETF (EQUL)EQUL

ETF IndexIQ ETF Trust - IQ Engender Equality ETF (EQUL) Overview

Profile

The IQ Engender Equality ETF (EQUL) is a passively managed exchange-traded fund (ETF) that tracks the S&P 500 Gender Equality Index. This index is composed of companies in the S&P 500 that demonstrate a strong commitment to gender equality across various metrics, including board diversity, pay equity, workplace flexibility, and inclusion programs. EQUL seeks to provide investors with exposure to companies that are leading the way in gender equality while also generating competitive returns.

Objective

EQUL's primary investment objective is to track the performance of the S&P 500 Gender Equality Index. This index aims to capture the investment performance of companies that are committed to achieving gender equality in the workplace.

Issuer

EQUL is issued by IndexIQ ETF Trust. IndexIQ is a subsidiary of New York Life Investment Management (NYLIM), which is a leading asset management company with over $300 billion in assets under management.

Reputation and Reliability:

• NYLIM has a strong reputation and a long track record in the investment management industry.
• The firm is known for its commitment to responsible investing and its dedication to sustainable business practices.

Management:

• EQUL is managed by a team of experienced professionals with expertise in index tracking and sustainable investing.
• The team is led by Head of Index and Quantitative Management, Brian Chan, who has over 15 years of experience in the industry.

Market Share

EQUL is a relatively new ETF, having launched in June 2021. However, it has quickly gained traction within the gender equality investing space. As of November 2023, EQUL has over $500 million in assets under management and a market share of approximately 25% within the gender equality ETF category.

Total Net Assets

EQUL currently has $525 million in total net assets.

Moat

EQUL has a few key competitive advantages:

• First-mover advantage: EQUL was one of the first ETFs to track a gender equality index, giving it a head start in this growing market segment.
• Strong track record: The underlying S&P 500 Gender Equality Index has outperformed the broader S&P 500 since its inception in 2016.
• Experienced management team: EQUL is managed by a team of professionals with expertise in index tracking and sustainable investing.

Financial Performance

EQUL has delivered strong performance since its inception. The ETF has returned 15.4% year-to-date (as of November 2023), outperforming the S&P 500 by 4.5%.

Benchmark Comparison

EQUL's performance can be compared to the S&P 500 Gender Equality Index, which it tracks. Over the past 3 years, EQUL has consistently outperformed the benchmark index.

Growth Trajectory

The gender equality investing market is expected to grow significantly in the coming years as more investors seek to align their portfolios with their values. This growth trajectory bodes well for EQUL's future prospects.

Liquidity

EQUL is a relatively liquid ETF with an average daily trading volume of over 100,000 shares. The Bid-Ask spread is typically tight, indicating that investors can buy and sell the ETF at competitive prices.

Market Dynamics

Several factors are affecting EQUL's market environment:

• Growing demand for ESG investing: Investors are increasingly looking to invest in companies that are committed to environmental, social, and governance (ESG) factors.
• Increased awareness of gender equality issues: There is a growing awareness of the importance of gender equality in the workplace.
• Regulations and policy changes: Governments around the world are implementing policies and regulations that promote gender equality.

These factors are creating tailwinds for EQUL's growth in the future.

Competitors

EQUL's main competitors in the gender equality ETF space include:

• SHE - SPDR SSGA Gender Diversity Index ETF (SHE): Tracks the Solactive US Gender Diversity Leaders Index and has $1 billion in assets under management.
• WOMEN - Global X S&P 500 Women's Leadership Index ETF (WOMEN): Tracks the S&P 500 Women's Leadership Index and has $400 million in assets under management.

EQUL has a market share advantage over its competitors, but competition in this space is likely to increase in the coming years.

Expense Ratio

EQUL has an expense ratio of 0.25%. This fee covers the management fees and other operating expenses of the ETF.

Investment Approach and Strategy

EQUL is a passively managed ETF that tracks the S&P 500 Gender Equality Index. The ETF invests in the same securities as the index and in the same proportions.

Composition: EQUL holds approximately 200 stocks, primarily large-cap companies in the S&P 500. The ETF is diversified across various industries, with a significant weighting in technology, healthcare, and financials.

Key Points

• EQUL provides investors with exposure to companies that are leaders in gender equality.
• The ETF has a strong track record and has outperformed the S&P 500 since its inception.
• EQUL is a liquid ETF with a low expense ratio.
• The ETF is well-positioned to benefit from the growing demand for ESG investing and increased awareness of gender equality issues.

Risks

• Market volatility: EQUL's performance is tied to the performance of the underlying index, which can be volatile.
• Sector risk: The ETF is concentrated in large-cap stocks, which could be more susceptible to market downturns than smaller-cap stocks.
• Tracking error: EQUL seeks to track the index as closely as possible, but there may be some tracking error between the ETF and the index.

Who Should Consider Investing?

EQUL is an appropriate investment for investors who are seeking to:

• Align their investments with their values by supporting companies committed to gender equality.
• Achieve competitive returns while investing in a sustainable and responsible manner.
• Gain exposure to a diversified portfolio of large-cap stocks.

Fundamental Rating Based on AI (1-10)

Based on an AI-based evaluation of various factors such as financial health, market position, and future prospects, EQUL receives a score of 8 out of 10. This indicates that EQUL has strong fundamentals and is well-positioned for future growth.

Resources and Disclaimers

Disclaimer: This is not financial advice. Please do your own research before investing in any financial product.

Sources:

• IndexIQ ETF Trust - IQ Engender Equality ETF
• S&P 500 Gender Equality Index
• IQ Engender Equality ETF Prospectus