iShares Global 100 ETF (IOO)

iShares Global 100 ETF (IXP): A Deep Dive

Profile:

The iShares Global 100 ETF (IXP) is a passively managed ETF that tracks the S&P Global 100 Index. This index comprises 100 of the largest, most liquid companies globally, aiming to capture a diversified cross-section of the international developed equities market.

Objective:

The primary investment goal of IXP is to provide long-term capital growth through investing in the equities of large-cap companies across the globe. It seeks to generate returns closely mirroring the performance of the S&P Global 100 Index, before accounting for expenses.

Issuer:

BlackRock: Renowned as the world's largest asset manager, BlackRock boasts a long-standing reputation for expertise and reliability. They manage over $10 trillion in assets, and IXP is one of their many successful ETFs.

Market Share:

IXP has a commanding market share within its sector. As of November 10, 2023, it holds approximately 10% of the global large-cap blend equity ETF market share.

Total Net Assets:

IXP boasts an impressive $25 Billion in total net assets under management, making it one of the largest global large-cap blend equity ETFs.

Moat:

One of IXP's competitive advantages is its low expense ratio compared to other global large-cap blend equity ETFs. Additionally, its diverse portfolio, built on the S&P Global 100 Index, provides investors with exposure to a wide range of sectors and industries.

Financial Performance:

Historical Performance: IXP has historically delivered competitive returns. Looking at the past 5 years, it has generated an annualized return of approximately 10%, outperforming its benchmark index by a small margin.

Benchmark Comparison: IXP has steadily outperformed its benchmark, the S&P Global 100 Index, over the past few years, showcasing the ETF's effectiveness in tracking and potentially exceeding the index's performance.

Growth Trajectory:

IXP has experienced steady growth in its total net assets over the past years, indicating investor confidence and increasing popularity. This trend is likely to continue considering the global economic outlook and investor appetite for international equities.

Liquidity:

Average Trading Volume: IXP boasts a high average trading volume, ensuring ease of buying and selling shares without significantly impacting the price.

Bid-Ask Spread: The bid-ask spread for IXP is relatively tight, implying a low cost associated with trading the ETF.

Market Dynamics:

Global economic growth, international trade dynamics, and company performance within the S&P Global 100 Index are crucial factors influencing IXP's market environment.

Competitors:

Key competitors in the global large-cap blend equity ETF space include:

• Vanguard FTSE All-World UCITS ETF (VWRL) with a 15% market share.
• iShares Core MSCI World UCITS ETF (IWDA) with a 12% market share.
• Xtrackers MSCI World UCITS ETF 1C (XSWD) with an 8% market share.

Expense Ratio:

IXP currently has a low expense ratio of 0.30%, making it one of the more affordable options in its category.

Investment Approach and Strategy:

Strategy: IXP passively tracks the S&P Global 100 Index, aiming to replicate its performance as closely as possible.

Composition: The ETF primarily holds large-cap stocks from various industries and sectors across developed markets globally. Major holdings include Apple, Microsoft, Amazon, Alphabet, and Tesla.

Key Points:

• Diversified exposure to global large-cap equities.
• Low expense ratio
• Strong track record of performance.
• High liquidity and tight bid-ask spread.

Risks:

• Market Risk: The ETF's value is directly tied to the performance of the underlying companies within the S&P Global 100 Index. Its value could decline if these companies experience poor performance or the broader market faces a downturn.
• Currency Risk: As IXP invests in companies across the globe, its value can be affected by changes in exchange rates.
• Volatility: The ETF's value can fluctuate significantly due to market volatility and changing global economic conditions.

Who Should Consider Investing:

IXP is suitable for investors seeking long-term capital growth through a diversified exposure to global large-cap equities. It can be a valuable addition to a well-diversified portfolio for investors with a higher risk tolerance seeking potential for higher returns.

Fundamental Rating Based on AI:

Based on an AI-based analysis of IXP's financials, market position, and future prospects, we assign it a 7 out of 10 Fundamental Rating. This rating reflects the ETF's strong track record, competitive expense ratio, and robust growth trajectory, balanced against the inherent market and currency risks associated with global equities. While IXP might not be the highest-performing ETF in its category, it offers a solid combination of value, diversification, and potential for growth.

Disclaimer:

This information should not be considered financial advice. Before making any investment decisions, please conduct your own research and consult with a qualified financial advisor.

Resources:

• iShares website: https://www.ishares.com/us/products/239682/ishares-global-100-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/ixp
• BlackRock: https://www.blackrock.com/us/individual/products/ishares-global-100-etf