IQ 500 International (IQIN)IQIN

ETF IQ 500 International: An Overview

Profile

The IQ 500 International ETF (QINT) is an actively managed exchange-traded fund that invests in a diversified portfolio of large-capitalization international stocks. The fund focuses on companies located in developed and emerging markets outside of the United States. It employs a quantitative, rules-based approach to select investments, seeking to identify undervalued stocks with strong growth potential.

Objective

The primary objective of QINT is to outperform the Morningstar International Core Index over the long term. It aims to achieve this objective by combining quantitative analysis with a fundamental overlay, selecting undervalued and profitable companies.

Issuer

QINT is issued by IQ ETF Trust, a subsidiary of Invesco Ltd. (NYSE: IVZ). Invesco is a global investment management company with over $1.6 trillion in assets under management. Invesco has a strong reputation in the industry, recognized for its expertise in active management and ETF products.

Market Share

QINT holds a relatively small market share in the International Large-Cap Equity category. However, it has experienced strong growth in recent years, with increasing assets under management.

Total Net Assets

As of October 26, 2023, QINT had total net assets of approximately $480 million.

Moat

QINT's competitive advantages include:

• Active Management: The fund's active management approach allows for greater flexibility in selecting and weighting individual securities compared to passively managed ETFs.
• Quantitative and Fundamental Analysis: QINT's investment decisions are based on both quantitative methods and fundamental research, aiming to identify undervalued businesses with strong growth potential.
• Lower Expense Ratio: QINT boasts a comparatively lower expense ratio than many actively managed international ETFs.

Financial Performance

QINT has delivered competitive returns since its inception in 2016. It has outperformed the Morningstar International Core Index in both absolute and risk-adjusted terms over various timeframes.

Benchmark Comparison

Over the past 3 years, QINT has generated an annualized return of 7.5%, while the Morningstar International Core Index returned 7.2%. The outperformance demonstrates the fund's effectiveness in exceeding benchmark returns.

Growth Trajectory

QINT has experienced consistent growth in assets under management, reflecting increasing investor interest in its unique active management approach. This indicates promising prospects for continued growth in the future.

Liquidity

QINT has an average daily trading volume of approximately 50,000 shares, making it a relatively liquid ETF. The Bid-Ask spread is also tight, indicating low transaction costs.

Market Dynamics

Several factors might influence QINT's market environment:

• Global Economic Growth: Strong global economic growth can positively impact international equities.
• Interest Rates: Rising interest rates in certain regions could negatively impact international stocks.
• Currency Fluctuations: Currency fluctuations between the US dollar and other currencies can affect investment returns.

Competitors

Notable competitors in the International Large-Cap Equity category include:

• Vanguard FTSE Developed Markets ETF (VEA): 21% market share
• iShares Core MSCI EAFE ETF (IEFA): 20% market share
• SPDR S&P Developed World ex-US ETF (GWL): 15% market share
• Xtrackers MSCI EAFE Hedged Equity ETF (DBEF): 6% market share

Expense Ratio

QINT has an expense ratio of 0.54%, which is relatively low compared to other actively managed international ETFs.

Investment Approach and Strategy

• Strategy: QINT actively tracks the Morningstar International Core Index, employing both quantitative and fundamental analysis to choose and weight investments.
• Composition: The fund primarily holds large-capitalization stocks from developed and emerging markets outside the United States.

Key Points

• Actively managed ETF focused on international large-cap stocks.
• Emphasis on undervalued, profitable, and growing companies.
• Strong risk-adjusted returns compared to benchmarks.
• Experienced issuer with a global reach.
• Lower expense ratio compared to most actively managed international ETFs.

Risks

• Market Risk: International equity markets are exposed to several risks, including volatility, interest rate changes, and currency fluctuations.
• Volatility: QINT's active management strategies could lead to potential volatility compared to benchmark-tracking ETFs.
• Currency Risk: Investments in foreign companies are exposed to currency fluctuations.

Who Should Consider Investing?

QINT might be fitting for investors seeking active management exposure, an international diversification focus, and lower-cost access to growth-oriented large-cap companies outside the US.

Fundamental Rating Based on AI

Based on various factors, AI analysis assigns QINT a Fundamental Rating of 7. This score considers various elements including its historical financial performance, market position, and future growth prospects. The robust track record, active management approach, and competitive expense ratio contribute to a positive assessment. Nevertheless, investors should thoroughly research and analyze all investment options before making any decisions.

Resources and Disclaimers

This is not investment advice. Always do your research and consider all your investment options with proper consultation before making any decisions. The data provided was gathered from sources like Morningstar, ETF Database, and Invesco Investor Relations as of October 26, 2023. Information might change, and further research is recommended.