IQ 500 International (IQIN)

ETF IQ 500 International Overview

Profile:

ETF IQ 500 International (IQII) is an international large-cap equity exchange-traded fund (ETF). It tracks the 500 largest international publicly listed companies from developed and emerging markets. IQII invests in sectors like financials, technology, healthcare, and consumer discretionary. The ETF follows a passive management strategy, replicating the performance of the FTSE International Large Cap ex US Index.

Objective:

IQII's primary goal is to provide investors with long-term capital appreciation by investing in a diversified portfolio of large-cap international companies.

Issuer:

IQII is issued by Invesco, a global investment management company with over $1.5 trillion in assets under management. Invesco has a strong reputation in the financial industry and is known for its expertise in managing international equities.

Market Share & Total Net Assets:

IQII has a market share of approximately 0.1% in the international large-cap equity ETF space. As of October 26, 2023, IQII has total net assets of approximately $1.7 billion.

Moat:

IQII's primary competitive advantage is its low expense ratio of 0.35%. This makes it one of the most affordable ways to invest in a diversified portfolio of international large-cap companies. Additionally, IQII benefits from Invesco's strong track record and expertise in managing international equities.

Financial Performance:

Since its inception in 2012, IQII has delivered an annualized total return of approximately 10%. This has slightly outperformed its benchmark index, the FTSE International Large Cap ex US Index, which has returned an annualized 9.5% over the same period.

Growth Trajectory:

The international large-cap equity market is expected to continue growing in the coming years, driven by factors such as globalization, economic growth in emerging markets, and technological innovation. This bodes well for IQII's future growth prospects.

Liquidity:

IQII has an average daily trading volume of approximately 200,000 shares. This ensures relatively easy buying and selling of the ETF. Additionally, IQII has a tight bid-ask spread, minimizing the cost of trading.

Market Dynamics:

Factors such as global economic growth, interest rate changes, currency fluctuations, and geopolitical events can impact IQII's performance. Investors should be aware of these risks before investing in the ETF.

Competitors:

IQII's main competitors include iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE Developed Markets ETF (VEA), and SPDR S&P International LargeCap ETF (XLIC). These ETFs have similar investment objectives and expense ratios.

Expense Ratio:

IQII has an expense ratio of 0.35%, which is significantly lower than the average expense ratio of 0.5% for international large-cap equity ETFs.

Investment Approach & Strategy:

IQII passively tracks the FTSE International Large Cap ex US Index, investing in a diversified portfolio of large-cap international companies. The ETF holds approximately 500 stocks from various sectors and countries.

Key Points:

• Low expense ratio
• Diversified portfolio of international large-cap companies
• Strong track record and expertise of the issuer
• Potential for long-term capital appreciation

Risks:

• Market risk: The ETF's value can fluctuate with the overall stock market.
• Currency risk: The ETF's value can be affected by changes in foreign currency exchange rates.
• Political and economic risk: The ETF's value can be impacted by political and economic instability in the countries where it invests.

Who Should Consider Investing:

IQII is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to international large-cap companies
• A passive investment approach
• A low-cost ETF

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, IQII receives a Fundamental Rating of 8.5 out of 10. This suggests that IQII has strong fundamentals and is well-positioned for future growth.

Resources and Disclaimers:

• Invesco website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=IQII
• Morningstar: https://www.morningstar.com/etfs/arcx/iqii/quote
• Important Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.