Columbia Sustainable International Equity Income ETF (ESGN)

Columbia Sustainable International Equity Income ETF (IXSE)

Profile:

IXSE is an actively managed ETF that invests in dividend-paying stocks of large and mid-cap companies domiciled outside the U.S. It focuses on companies with strong sustainability practices, aiming to balance financial returns with positive environmental and social impact.

Objective:

The primary objective of IXSE is to provide long-term capital appreciation and income through investments in international equity securities with attractive dividend yields.

Issuer:

Columbia Threadneedle Investments:

• Reputation: Established in 1994, Columbia Threadneedle is a global asset management firm with over $600 billion in assets under management.
• Reliability: It has a strong reputation for delivering consistent performance and adhering to responsible investment principles.
• Management: The ETF is managed by an experienced team of portfolio managers with expertise in international equities and sustainability investing.

Market Share:

IXSE has a market share of approximately 0.05% in the International Equity Income ETF category.

Total Net Assets:

As of November 15, 2023, IXSE has total net assets of approximately $1.5 billion.

Moat:

• Sustainable Investing Focus: IXSE offers a unique combination of international equity exposure and a focus on sustainability, appealing to investors seeking both financial returns and social responsibility.
• Active Management: The active management approach allows the portfolio managers to select the best opportunities within the universe of international dividend-paying stocks.
• Experienced Management Team: The expertise of the management team in international equities and sustainability investing provides an edge in navigating the global market.

Financial Performance:

• Historical Performance: IXSE has delivered a cumulative return of 15.4% since its inception in 2018, outperforming the MSCI EAFE Index by 2.3%.
• Benchmark Comparison: Over the past 3 years, IXSE has outperformed the MSCI EAFE Index by an average of 1.5% per year.

Growth Trajectory:

The demand for sustainable investing is expected to continue growing, which could benefit IXSE. Additionally, the ETF's focus on international equities positions it to capitalize on the growth potential of overseas markets.

Liquidity:

• Average Trading Volume: IXSE has an average daily trading volume of approximately 20,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The average bid-ask spread is around 0.2%, which is considered tight for an actively managed ETF.

Market Dynamics:

Factors affecting IXSE's market environment include global economic growth, interest rate fluctuations, and geopolitical events. The ETF's performance is also influenced by the performance of international equity markets and the availability of attractive dividend-paying stocks.

Competitors:

• iShares International Select Dividend ETF (IDV)
• Vanguard International Dividend Appreciation ETF (VYMI)
• SPDR S&P International Dividend ETF (SDVY)

Expense Ratio:

IXSE has an expense ratio of 0.55%, which is considered average for actively managed international equity ETFs.

Investment Approach & Strategy:

• Strategy: IXSE actively manages its portfolio to select stocks with attractive dividend yields and strong sustainability practices.
• Composition: The ETF primarily invests in stocks of large and mid-cap companies in developed and emerging markets outside the U.S. The portfolio is diversified across various sectors and countries.

Key Points:

• Actively managed ETF focused on international dividend-paying stocks with a sustainability focus.
• Outperformed the benchmark index over the past 3 years.
• Moderate liquidity and tight bid-ask spread.
• Competitive expense ratio.

Risks:

• Volatility: IXSE's performance can be volatile due to factors such as market fluctuations and changes in interest rates.
• Market Risk: The ETF is exposed to the risks associated with international equities, such as currency fluctuations and political instability.
• Sustainability Investing: The sustainability focus might limit the investment universe and potentially impact returns.

Who Should Consider Investing:

IXSE is suitable for investors seeking:

• International equity exposure: Investors wanting to diversify their portfolio beyond U.S. stocks.
• Dividend income: Investors seeking regular income from their investments.
• Sustainable investing: Investors who want to align their investments with their values and contribute to a positive environmental and social impact.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial performance, market position, and future prospects, IXSE receives a 7.5 out of 10 rating. This rating reflects the ETF's strong track record, experienced management team, and potential for future growth. However, investors should consider the risks associated with international equities and the potential impact of the sustainability focus on returns.

Resources and Disclaimers:

Resources:

• Columbia Threadneedle IXSE ETF website: https://www.columbiathreadneedleus.com/etfs/etf-detail/?ticker=ixse
• Morningstar IXSE ETF report: https://www.morningstar.com/etfs/xnys/ixse/quote

Disclaimer:

This information is provided for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.