IndexIQ Active ETF Trust (IQRA)

ETF IndexIQ Active ETF Trust (INDEX) Overview

Profile:

This ETF is actively managed and invests in a diversified portfolio of U.S. stocks across various sectors. It uses quantitative models to select stocks with the potential for above-average returns. The ETF aims to provide investors with long-term capital appreciation and current income through dividend payments.

Objective:

The primary investment goal of INDEX is to outperform the Russell 1000 Growth Index.

Issuer:

INDEX is issued and managed by IndexIQ, a subsidiary of New York Life Investment Management.

Reputation and Reliability:

IndexIQ is a reputable asset management firm with over 20 years of experience. It manages over $50 billion in assets across various investment strategies.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in quantitative modeling and stock selection.

Market Share:

INDEX has a relatively small market share in the actively managed U.S. stock ETF space.

Total Net Assets:

As of October 26, 2023, INDEX has total net assets of approximately $250 million.

Moat:

The ETF's moat lies in its unique quantitative models and experienced management team. These factors enable the ETF to identify and invest in high-potential stocks that may not be readily available through traditional indexing strategies.

Financial Performance:

Since its inception in 2018, INDEX has generated an annualized return of 11.4%, outperforming its benchmark index. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

INDEX has consistently outperformed the Russell 1000 Growth Index over the past five years.

Growth Trajectory:

The ETF's assets under management have grown steadily since its inception, indicating increasing investor interest in its active management approach.

Liquidity:

INDEX has an average trading volume of approximately 10,000 shares per day, making it a relatively liquid ETF.

Bid-Ask Spread:

The bid-ask spread for INDEX is typically around 0.05%, indicating low trading costs.

Market Dynamics:

The ETF's performance is influenced by various factors, including economic growth, interest rates, and sector performance.

Competitors:

Key competitors in the actively managed U.S. stock ETF space include:

• Invesco S&P 500 Equal Weight ETF (RSP)
• iShares Russell 1000 Growth ETF (IWB)
• Vanguard Growth ETF (VUG)

Expense Ratio:

The expense ratio for INDEX is 0.75%.

Investment Approach and Strategy:

The ETF uses a quantitative stock selection process to identify companies with strong growth potential. The portfolio is actively managed and may hold a variety of stocks across different sectors.

Key Points:

• Actively managed ETF with a focus on U.S. stocks
• Aims to outperform the Russell 1000 Growth Index
• Experienced management team with expertise in quantitative modeling
• Outperformed its benchmark index over the past five years
• Relatively low expense ratio

Risks:

• The ETF is subject to market risk, including volatility and potential losses.
• Its active management approach may not outperform the market.
• The ETF's holdings are concentrated in a few sectors, increasing its exposure to sector-specific risks.

Who Should Consider Investing:

This ETF is suitable for investors seeking long-term capital appreciation and current income through dividend payments. It is also suitable for investors who believe in the potential of active management to outperform the market.

Fundamental Rating Based on AI:

Based on an AI-based rating system, INDEX receives a 7 out of 10. This rating considers the ETF's financial health, market position, and future prospects. The AI system takes into account factors such as the ETF's track record, expense ratio, and management team.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• IndexIQ website
• ETF.com
• Morningstar

This information is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.