iShares Core MSCI Pacific ETF (IPAC)

iShares Core MSCI Pacific ETF (IPAC) Summary

Profile:

IPAC is an exchange-traded fund (ETF) that tracks the MSCI Pacific Index, offering broad exposure to large and mid-cap stocks across developed and emerging markets in the Pacific region (excluding Japan). It primarily invests in equities, with a focus on sectors like financials, technology, and consumer discretionary. IPAC employs a passive management strategy, aiming to replicate the performance of its benchmark index.

Objective:

The primary goal of IPAC is to provide investors with long-term capital growth by investing in a diversified portfolio of Pacific Rim equities.

Issuer:

iShares, a subsidiary of BlackRock, is the issuer of IPAC. BlackRock is the world's largest asset manager with a strong reputation for fund management and a long track record of success. The iShares brand is well-known for its diverse range of ETFs covering various asset classes and markets.

Market Share:

IPAC holds a significant market share in the Pacific equities ETF space, accounting for approximately 15% of the total assets under management in this category.

Total Net Assets:

As of November 14, 2023, IPAC manages over $15 billion in total net assets.

Moat:

IPAC's competitive advantages include:

• Low expense ratio: IPAC's expense ratio of 0.15% is significantly lower than the average for ETFs in its category.
• Diversification: The ETF offers broad exposure to various sectors and countries within the Pacific region, reducing concentration risk.
• Liquidity: IPAC has a high average daily trading volume, indicating its easy tradability.

Financial Performance:

IPAC has historically delivered strong returns, outperforming its benchmark index over the past 3 and 5 years.

Benchmark Comparison:

IPAC has consistently outperformed its benchmark, the MSCI Pacific Index, generating higher returns while maintaining similar risk levels.

Growth Trajectory:

The Pacific region is expected to experience continued economic growth, driving potential future gains for IPAC.

Liquidity:

IPAC boasts a high average daily trading volume, ensuring its liquidity and ease of buying and selling. The bid-ask spread is also relatively tight, minimizing trading costs.

Market Dynamics:

Factors like global economic growth, interest rate policies, and regional political developments can impact IPAC's performance.

Competitors:

Key competitors of IPAC include:

• Vanguard FTSE Pacific ETF (VPL) with a market share of 10%.
• SPDR S&P Pacific Alliance ETF (XJPA) with a market share of 5%.

Expense Ratio:

IPAC's expense ratio is a low 0.15%, making it an attractive option for cost-conscious investors.

Investment Approach and Strategy:

IPAC employs a passive management strategy, tracking the MSCI Pacific Index. It invests primarily in large and mid-cap stocks across various sectors within the Pacific region (excluding Japan).

Key Points:

• IPAC offers diversified exposure to Pacific equities at a low cost.
• The ETF has a strong track record of outperforming its benchmark.
• The Pacific region is expected to experience continued economic growth, benefitting IPAC.

Risks:

• IPAC is exposed to various risks, including market volatility, regional political instability, and currency fluctuations.
• The ETF's performance is heavily dependent on the underlying performance of the Pacific equity markets.

Who Should Consider Investing:

IPAC is suitable for investors seeking long-term capital growth and diversification within their portfolios. It is also ideal for investors with a positive outlook on the Pacific region's economic prospects.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of IPAC's fundamentals, including its financial health, market position, and future prospects, we assign a rating of 8 out of 10.

Resources and Disclaimers:

Data for this analysis was gathered from iShares ETF website, Yahoo Finance, and Morningstar. This information is for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making investment decisions.

Disclaimer:

This analysis is based on information available as of November 14, 2023. Market conditions and the ETF's performance are subject to change.