IQ Healthy Hearts ETF (HART)HART

ETF IQ Healthy Hearts ETF (HART)

Profile:

ETF IQ Healthy Hearts ETF is an actively managed exchange-traded fund that invests in publicly traded equities of companies engaged in the healthcare sector specifically focused on companies involved in the prevention, diagnosis, and treatment of cardiovascular diseases (CVDs). It utilizes a proprietary index, the Healthy Hearts Index, to select its holdings.

Objective:

The primary investment goal of HART is to provide long-term capital appreciation by investing in companies that are positioned to benefit from the growing global CVD market.

Issuer:

EQM Indexes

• Reputation and Reliability: EQM Indexes is a privately held company founded in 2012. While not as well-known as some of the larger ETF issuers, they have a solid reputation for developing innovative and thematic indexes.
• Management: The ETF is sub-advised by Toroso Investments, a leading provider of quantitative investment strategies with a strong track record.

Market Share:

HART has a relatively small market share within the healthcare sector, with approximately $23.51 million in assets under management as of November 10, 2023.

Total Net Assets:

$23.51 million (as of November 10, 2023)

Moat:

• Unique Investment Focus: HART's focus on the CVD market provides a differentiated approach within the broader healthcare sector.
• Active Management: The ETF's active management allows for greater flexibility in selecting holdings and potentially outperform the market.
• Experienced Sub-advisor: Toroso Investments' expertise in quantitative strategies can provide an edge in identifying promising companies.

Financial Performance:

• Year-to-date: -1.59% (as of November 10, 2023)
• 1-year: 10.07% (as of November 10, 2023)
• 3-year: 13.74% (as of November 10, 2023)

Benchmark Comparison:

HART has outperformed its benchmark, the S&P 500 Health Care Index, over the past 1 and 3 years.

Growth Trajectory:

The global CVD market is expected to grow significantly in the coming years, driven by factors such as an aging population, rising obesity rates, and increasing awareness of CVDs. This growth could potentially benefit HART.

Liquidity:

• Average Trading Volume: 22,585 shares (as of November 10, 2023)
• Bid-Ask Spread: 0.05% (as of November 10, 2023)

Market Dynamics:

• Positive: Growing CVD market, increasing healthcare spending, technological advancements.
• Negative: Regulatory changes, competition from other healthcare ETFs, potential market volatility.

Competitors:

• iShares Global Healthcare ETF (IXJ): 0.40% expense ratio, $8.54 billion in AUM.
• Vanguard Health Care ETF (VHT): 0.10% expense ratio, $46.44 billion in AUM.
• SPDR S&P Health Care ETF (XLV): 0.13% expense ratio, $23.52 billion in AUM.

Expense Ratio:

0.75%

Investment Approach and Strategy:

• Strategy: Actively managed, invests in publicly traded equities of companies in the CVD space.
• Composition: Primarily holds large-cap stocks with a focus on the US market.

Key Points:

• Provides exposure to a growing market with significant potential.
• Actively managed with a unique investment focus.
• Experienced sub-advisor with a strong track record.
• Relatively higher expense ratio compared to some competitors.

Risks:

• Volatility: The healthcare sector can be volatile, potentially leading to significant fluctuations in the ETF's price.
• Market Risk: The ETF's performance is tied to the performance of the CVD market, which is influenced by various factors such as economic conditions, regulatory changes, and technological advancements.
• Concentration Risk: The ETF is concentrated in large-cap stocks, which may make it more susceptible to market downturns.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation with exposure to the growing CVD market.
• Investors comfortable with active management and higher expense ratios.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

7/10

HART has a strong investment focus and experienced management, which are positive factors. However, its relatively small market share, higher expense ratio, and concentration risk are drawbacks.

Resources:

• ETF IQ Healthy Hearts ETF website: https://www.iqetfs.com/hart/
• ETF.com: https://www.etf.com/HART
• Yahoo Finance: https://finance.yahoo.com/quote/HART/

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.