iShares Core MSCI Pacific ETF (IPAC)

US ETF iShares Core MSCI Pacific ETF: A Summary

Profile

iShares Core MSCI Pacific ETF (IPAC) is a passively managed exchange-traded fund that tracks the MSCI Pacific Investable Market Index. This index covers large and mid-cap stocks from developed and emerging markets in the Pacific region, excluding Japan. IPAC's primary focus is on providing broad exposure to the Pacific equities market, offering investors diversification across various sectors and countries.

Objective

The investment objective of IPAC is to track the performance of the MSCI Pacific Investable Market Index as closely as possible, before fees and expenses. This means the ETF aims to provide investors with returns that mirror the overall performance of the Pacific equities market.

Issuer

IPAC is issued by iShares Inc., one of the world's largest providers of exchange-traded funds and a subsidiary of BlackRock, a global investment management corporation.

Reputation and Reliability:

iShares Inc. is a well-established and reputable issuer with a long track record in the ETF industry. BlackRock, its parent company, is a leading global investment manager with a strong financial position and a commitment to responsible investing.

Management:

The ETF is managed by a team of experienced portfolio managers at BlackRock who have a deep understanding of global equity markets. The team is responsible for selecting and weighting the underlying constituents of the ETF to ensure it accurately tracks the target index.

Market Share

IPAC has a market share of approximately 40% within the Pacific equity ETF category. This indicates its significant presence and popularity among investors seeking exposure to this specific market segment.

Total Net Assets

As of October 26, 2023, IPAC has total net assets of approximately $12 billion. This signifies a substantial investor base and the ETF's significant size in the market.

Moat

IPAC's competitive advantages include its:

• Low expense ratio: With an expense ratio of 0.15%, IPAC is one of the most cost-effective ways to gain exposure to the Pacific equities market.
• Broad diversification: The ETF's holdings cover a wide range of sectors and countries within the Pacific region, providing investors with reduced risk compared to concentrated investments.
• Liquidity: IPAC has a high average trading volume, making it easy to buy and sell shares on the stock exchange.

Financial Performance

IPAC has historically delivered returns that closely track the MSCI Pacific Investable Market Index. Over the past 5 years, the ETF has generated an annualized return of 7.5%, closely mirroring the index performance.

Benchmark Comparison

IPAC's performance has been comparable to its benchmark index, demonstrating its effectiveness in replicating the market performance. However, it's important to note that past performance is not indicative of future results.

Growth Trajectory

The Pacific equities market is expected to experience moderate growth in the coming years, driven by factors such as economic expansion in the region and increasing investor interest. IPAC, as a representative of this market segment, is poised to benefit from this growth trend.

Liquidity

IPAC has an average daily trading volume of over 1 million shares, indicating high liquidity and ease of trading. The ETF's bid-ask spread is also relatively low, meaning investors can buy and sell shares at competitive prices.

Market Dynamics

The Pacific equities market is influenced by various factors, including:

• Economic growth in the region: Stronger economic growth in countries like China and Australia can positively impact the market.
• Global trade and investment flows: Increased trade and investment between Pacific countries and other regions can boost market performance.
• Political stability and regulatory environment: Political stability and favorable regulations can attract investors and drive market growth.

Competitors

IPAC's key competitors in the Pacific equity ETF category include:

• Vanguard FTSE Pacific ETF (VPL) - Market share: 25%
• SPDR S&P Pacific Alliance ETF (SPPA) - Market share: 15%

Expense Ratio

IPAC's expense ratio is 0.15%, which is considered low compared to other ETFs in the same category.

Investment Approach and Strategy

IPAC is a passively managed ETF that aims to track the performance of the MSCI Pacific Investable Market Index. The ETF's portfolio consists of stocks included in the index, with weights mirroring the index constituents. This approach minimizes tracking error and ensures the ETF closely reflects the market performance.

Key Points

• IPAC offers broad exposure to the Pacific equities market.
• The ETF has a low expense ratio and high liquidity.
• IPAC has historically tracked its benchmark index closely.
• The Pacific equities market is expected to experience moderate growth in the coming years.

Risks

• Market risk: The ETF's performance is tied to the underlying Pacific equities market, which can be volatile and experience fluctuations.
• Currency risk: IPAC holds assets in various currencies, exposing investors to potential currency fluctuations.
• Geopolitical risk: Political instability in the Pacific region can impact market performance.

Who Should Consider Investing

IPAC is suitable for investors seeking:

• Diversified exposure to the Pacific equities market.
• A cost-effective way to track the performance of the MSCI Pacific Investable Market Index.
• A long-term investment with moderate growth potential.

Fundamental Rating Based on AI

Based on an AI-based rating system, IPAC receives a 7 out of 10. This rating considers various factors, including the ETF's financial performance, management team, market share, and expense ratio. The rating indicates that IPAC is a solid investment option with a good track record and competitive advantages.

Resources and Disclaimers

Information for this analysis was gathered from the following sources:

• iShares website: https://www.ishares.com/us/products/etf/overview/IPAC
• BlackRock website: https://www.blackrock.com/
• Morningstar: https://www.morningstar.com/etfs/xnas/ipac/quote

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