IndexIQ Active ETF Trust (IQRA)

ETF IndexIQ Active ETF Trust Summary

Profile:

The IndexIQ Active ETF Trust (IQDE) is an actively managed exchange-traded fund (ETF) that seeks capital appreciation. It invests primarily in a diversified portfolio of U.S. equity securities across various market capitalizations. The ETF utilizes a customized weighting methodology based on quantitative factors, including price momentum, fundamental analysis, and short-term technical indicators.

Objective:

The primary investment goal of IQDE is to outperform the Russell 1000 Index by actively selecting and weighting individual stocks within the index.

Issuer:

IQDE is offered by IndexIQ, a subsidiary of New York Life Investment Management Holdings LLC.

Reputation and Reliability: IndexIQ has a strong reputation in the financial industry with a long history of managing actively managed ETFs. As of 2023, New York Life Investment Management Holdings LLC manages over $300 billion in assets.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and active portfolio management.

Market Share: IQDE currently holds a small market share within the actively managed ETF space.

Total Net Assets: As of November 2023, IQDE has approximately $150 million in total net assets.

Moat: IQDE's competitive advantage lies in its unique active management approach and its focus on quantitative analysis. This allows the ETF to potentially outperform the market by identifying undervalued or mispriced securities.

Financial Performance:

IQDE has historically delivered competitive returns, outperforming the Russell 1000 Index in several periods. However, past performance is not indicative of future results.

Benchmark Comparison: IQDE has outperformed the Russell 1000 Index in 3 out of the past 5 years.

Growth Trajectory: The ETF's growth trajectory is dependent on market conditions and its ability to continue to outperform its benchmark.

Liquidity: IQDE has a moderate trading volume, indicating acceptable liquidity.

Bid-Ask Spread: The bid-ask spread for IQDE is in line with comparable actively managed ETFs.

Market Dynamics: The ETF's market environment is influenced by factors such as economic growth, interest rates, and sector performance.

Competitors: Major competitors include actively managed ETFs such as VTI (Vanguard Total Stock Market ETF), SPY (SPDR S&P 500 ETF), and IVV (iShares CORE S&P 500 ETF).

Expense Ratio: The expense ratio for IQDE is 0.75%, which is slightly higher than some other actively managed ETFs.

Investment Approach and Strategy: IQDE actively selects and weights individual stocks within the Russell 1000 Index based on quantitative factors.

Key Points:

• Actively managed ETF seeking capital appreciation.
• Invests in a diversified portfolio of U.S. equities across various market capitalizations.
• Utilizes a quantitative weighting methodology.
• Aims to outperform the Russell 1000 Index.
• Moderate expense ratio.

Risks:

• Potential for underperformance compared to the benchmark.
• Higher expense ratio than some other ETFs.
• Market risk associated with underlying equity holdings.

Who Should Consider Investing:

Investors seeking active management and potential outperformance within the U.S. equity market may consider IQDE. However, investors should carefully consider the risks involved before investing.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, IQDE receives a rating of 7 out of 10. This rating reflects the ETF's solid track record, experienced management team, and unique investment strategy. However, the higher expense ratio and relatively small market share are factors that slightly dampen the overall rating.

Resources and Disclaimers:

• Resources: IndexIQ website, ETF.com, Morningstar
• Disclaimer: This information should not be considered financial advice. Investors should conduct their own research and due diligence before making any investment decisions.