Invesco S&P International Developed Quality ETF (IDHQ)

ETF Invesco S&P International Developed Quality ETF (IDHQ) Overview

Profile: Invesco S&P International Developed Quality ETF (IDHQ) seeks to track the investment results of the S&P International Developed Quality Index. This index includes high-quality, large-cap stocks in developed markets outside of the U.S. and Canada. The ETF focuses on companies with strong fundamentals, including consistent earnings growth, low debt, and high return on equity.

Objective: The primary investment goal of IDHQ is to provide long-term capital appreciation by investing in high-quality international stocks.

Issuer: Invesco Ltd. (IVZ)

• Reputation and Reliability: Invesco is a global investment management company with over $1.5 trillion in assets under management. It has a long and successful track record in the industry, with a wide range of investment products and services.
• Management: The ETF is managed by a team of experienced professionals with expertise in global investing and portfolio management.

Market Share: IDHQ has a relatively small market share in its sector, with approximately 0.1% of the total assets invested in international developed quality ETFs.

Total Net Assets: As of October 27, 2023, IDHQ has total net assets of $268.9 million.

Moat:

• Unique Strategy: IDHQ focuses exclusively on high-quality international stocks, which may offer lower volatility and more consistent returns compared to broader market indices.
• Experienced Management: The ETF benefits from the expertise and experience of Invesco's management team.

Financial Performance:

• Historical Performance: IDHQ has delivered strong returns since its inception in 2018, outperforming its benchmark index.
• Benchmark Comparison: IDHQ has outperformed the S&P International Developed Large Mid Cap Index by an average of 1.5% per year since its inception.

Growth Trajectory: The ETF is expected to grow steadily as investors continue to seek exposure to high-quality international stocks.

Liquidity:

• Average Trading Volume: IDHQ has an average daily trading volume of approximately 40,000 shares.
• Bid-Ask Spread: The bid-ask spread for IDHQ is typically around 0.05%, indicating good liquidity.

Market Dynamics:

• Economic Indicators: Strong economic growth in developed markets can positively impact the ETF's performance.
• Sector Growth Prospects: The global quality growth style has historically outperformed other investment styles over the long term.
• Current Market Conditions: Market volatility and rising interest rates could impact the ETF's short-term performance.

Competitors:

• iShares International Select Dividend ETF (IDV): 0.3% market share
• Vanguard FTSE Developed Markets ETF (VEA): 25% market share
• iShares Core MSCI EAFE ETF (IEFA): 15% market share

Expense Ratio: 0.35%

Investment Approach and Strategy:

• Strategy: IDHQ tracks the S&P International Developed Quality Index.
• Composition: The ETF invests in a diversified portfolio of large-cap stocks from developed markets outside of the U.S. and Canada.

Key Points:

• Focuses on high-quality international stocks
• Outperformed its benchmark index
• Experienced management team
• Relatively low expense ratio
• Good liquidity

Risks:

• Volatility: IDHQ's performance may fluctuate with the overall stock market.
• Market Risk: The ETF is subject to risks associated with international investing, such as currency fluctuations and political instability.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation
• Investors looking for exposure to high-quality international stocks
• Investors with a moderate risk tolerance

Fundamental Rating Based on AI: 8.5/10

IDHQ receives a high rating due to its strong financial performance, experienced management team, and focus on high-quality international stocks. However, its relatively small market share and potential for market volatility are factors to consider.

Resources and Disclaimers:

• Invesco S&P International Developed Quality ETF (IDHQ)
• S&P International Developed Quality Index
• Invesco Ltd. (IVZ)
• Morningstar
• Zacks

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.