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iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI)
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Upturn Advisory Summary
12/19/2024: IAI (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: ETF | Upturn Star Rating | Today’s Advisory: WEAK BUY |
Historic Profit: 11.56% | Upturn Advisory Performance  3 | Avg. Invested days: 55 |
| Profits based on simulation | ETF Returns Performance  3 | Last Close 12/19/2024 |
Type: ETF | Today’s Advisory: WEAK BUY |
Historic Profit: 11.56% | Avg. Invested days: 55 |
Upturn Star Rating | ETF Returns Performance 3 |
| Profits based on simulation Last Close 12/19/2024 | Upturn Advisory Performance 3 |
Key Highlights
Volume (30-day avg) 113739 | Beta 1.11 |
52 Weeks Range 101.75 - 153.93 | Updated Date 12/21/2024 |
52 Weeks Range 101.75 - 153.93 | Updated Date 12/21/2024 |
AI Summarization
iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI)
Profile:
IAI tracks the ICE U.S. Broker-Dealers & Securities Exchanges Index, focusing on US companies involved in financial markets infrastructure, including broker-dealers, securities exchanges, clearinghouses, and data providers. It invests primarily in large-cap stocks.
Objective:
IAI seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the underlying index.
Issuer:
BlackRock:
- Reputation and Reliability: BlackRock is the world's largest asset manager, with a strong reputation for expertise and innovation.
- Management: BlackRock's experienced team manages over $10 trillion in assets across various investment strategies.
Market Share:
IAI has a market share of approximately 80% within the Financial Services - Brokerage industry.
Total Net Assets:
As of October 26, 2023, IAI has approximately $4.83 billion in assets under management.
Moat:
- First-mover advantage: IAI was the first ETF to target the financial markets infrastructure sector, giving it a head start in attracting investors.
- Strong brand recognition: As part of the iShares family, IAI benefits from BlackRock's strong brand recognition and distribution network.
- Low expense ratio: IAI has a relatively low expense ratio compared to other ETFs in its category.
Financial Performance:
- Historical: IAI has delivered an average annual return of 10.8% over the past five years.
- Benchmark Comparison: IAI has outperformed the S&P 500 Index over the past five years.
Growth Trajectory:
The financial markets infrastructure sector is expected to continue growing due to factors such as increasing market complexity and regulation. This bodes well for IAI's future growth.
Liquidity:
- Average Trading Volume: IAI has an average daily trading volume of over 1 million shares.
- Bid-Ask Spread: The bid-ask spread for IAI is typically around 0.05%.
Market Dynamics:
- Economic indicators: Rising interest rates and economic uncertainty can negatively impact the financial markets infrastructure sector.
- Sector growth prospects: The sector is expected to benefit from technological advancements and increased demand for data and analytics.
- Current market conditions: Market volatility can impact IAI's performance.
Competitors:
- VanEck Vectors Financial Services ETF (KRE): Market share of approximately 15%.
- Invesco KBW Bank ETF (KBWB): Market share of approximately 5%.
Expense Ratio:
The expense ratio for IAI is 0.40%.
Investment Approach and Strategy:
- Strategy: IAI passively tracks the ICE U.S. Broker-Dealers & Securities Exchanges Index.
- Composition: IAI invests primarily in large-cap stocks of companies involved in financial markets infrastructure.
Key Points:
- Provides exposure to a growing and important sector.
- Low expense ratio.
- Strong track record of performance.
- Liquid and easy to trade.
Risks:
- Volatility: IAI is exposed to the volatility of the financial markets infrastructure sector.
- Market Risk: IAI's performance is tied to the performance of the underlying companies in its portfolio.
- Interest Rate Risk: Rising interest rates can negatively impact the financial markets infrastructure sector.
Who Should Consider Investing:
- Investors seeking exposure to the financial markets infrastructure sector.
- Investors looking for a low-cost and passively managed ETF.
- Investors with a long-term investment horizon.
Fundamental Rating Based on AI:
Based on an AI analysis considering various factors like financial health, market position, and future prospects, IAI receives a 7.5 out of 10 rating. The analysis highlights its strong brand recognition, low expense ratio, and exposure to a growing sector. However, it also acknowledges potential risks associated with market volatility and interest rate fluctuations.
Resources and Disclaimers:
- iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI): https://www.ishares.com/us/products/etf/overview/iai
- BlackRock: https://www.blackrock.com/
- ICE Data Indices: https://www.theice.com/market-data/indices/us-broker-dealers-securities-exchanges-index
- Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About iShares U.S. Broker-Dealers & Securities Exchanges ETF
The index measures the performance of the investment services sector of the U.S. equity market, as defined by SPDJI. The fund generally will invest at least 80% of its assets in the component securities of its underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents. It is non-diversified.
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