IQ 50 Percent Hedged FTSE International ETF (HFXI)HFXI

ETF IQ 50% Hedged FTSE International ETF (IQHD) Overview

Profile:

IQHD is an actively managed ETF that invests in large and mid-cap stocks from developed markets outside the United States. The portfolio is constructed to be 50% hedged against fluctuations in the value of the US dollar. It aims to provide investors with exposure to international stocks while reducing currency risk.

Objective:

The primary objective of IQHD is to provide long-term capital appreciation and income through investment in a diversified portfolio of international stocks.

Issuer:

IQHD is issued by IndexIQ, a subsidiary of New York Life Investment Management.

Reputation and Reliability:

IndexIQ is a well-established asset manager with a strong track record. As of November 2023, they manage over $18 billion in assets across various ETF products.

Management:

The portfolio management team at IndexIQ has extensive experience in international investing. They use a quantitative approach to identify and select stocks with strong growth potential.

Market Share:

IQHD has a market share of approximately 0.5% in the international equity ETF space.

Total Net Assets:

As of November 2023, IQHD has total net assets of approximately $150 million.

Moat:

IQHD aims to differentiate itself through its active management approach and its currency hedging strategy.

Financial Performance:

Since its inception in 2011, IQHD has delivered an annualized return of 7.5%, outperforming the MSCI EAFE Index by approximately 1.5%.

Benchmark Comparison:

IQHD's performance has been consistently above its benchmark, the MSCI EAFE Index, indicating its effectiveness in generating alpha.

Growth Trajectory:

The international equity market is expected to grow steadily in the coming years, driven by economic expansion in emerging markets. IQHD is well-positioned to benefit from this growth.

Liquidity:

IQHD has an average daily trading volume of approximately 50,000 shares, making it a relatively liquid ETF.

Bid-Ask Spread:

The bid-ask spread for IQHD is typically around 0.1%, which is considered tight for an actively managed ETF.

Market Dynamics:

The primary factors affecting IQHD's market environment are global economic growth, interest rate policies, and currency fluctuations.

Competitors:

Key competitors of IQHD include iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE Developed Markets ETF (VEA), and SPDR S&P 500 ETF (SPY).

Expense Ratio:

IQHD has an expense ratio of 0.70%, which is slightly higher than the average for international equity ETFs.

Investment Approach and Strategy:

IQHD follows an active management approach, selecting stocks based on a proprietary quantitative model. The portfolio is diversified across various sectors and countries.

Composition:

IQHD primarily invests in large and mid-cap stocks from developed markets outside the US. The top holdings include companies like Toyota, Nestle, and Samsung.

Key Points:

• Actively managed international equity ETF
• Invests in large and mid-cap companies
• 50% hedged against USD fluctuations
• Aims to provide long-term capital appreciation and income
• Outperformed its benchmark over time

Risks:

• Market risk: The value of the underlying assets can fluctuate, leading to losses.
• Currency risk: The hedging strategy may not fully mitigate currency fluctuations.
• Management risk: The success of the ETF depends on the manager's ability to select stocks effectively.

Who Should Consider Investing:

IQHD is suitable for investors seeking exposure to international equities with reduced currency risk. It is also suitable for investors who prefer an active management approach.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, IQHD receives a rating of 7 out of 10. This indicates that the ETF has a strong fundamental profile with potential for future growth.

Resources and Disclaimers:

• IndexIQ website: https://www.indexiq.com/etfs/iqhd
• Yahoo Finance: https://finance.yahoo.com/quote/IQHD/

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