IQ Candriam ESG International Equity ETF (IQSI)IQSI

ETF IQ Candriam ESG International Equity ETF Overview

Profile:

ETF IQ Candriam ESG International Equity ETF (Ticker: IQDE) is a passively managed ETF that tracks the performance of the Solactive ISS ESG International Equity Index. It invests primarily in large and mid-cap stocks from developed markets outside the United States, excluding Canada. The ETF's asset allocation focuses on companies demonstrating strong environmental, social, and governance (ESG) practices.

Objective:

IQDE's primary objective is to provide long-term capital appreciation by investing in international companies committed to ESG principles. The ETF seeks to offer investors exposure to a diversified portfolio of sustainable companies with the potential for growth.

Issuer:

IQDE is issued by IndexIQ, an ETF provider partnered with New York Life Investment Management.

Reputation and Reliability:

IndexIQ has a solid reputation in the ETF industry, known for its innovative and actively managed ETF offerings. The company has been recognized for its commitment to ESG investing and its dedication to providing investors with access to sustainable investment solutions.

Management:

IndexIQ's ETF portfolio management team comprises experienced professionals with expertise in quantitative analysis, portfolio construction, and risk management. They are responsible for selecting and weighting the ETF's underlying holdings to track the target index.

Market Share:

IQDE has a relatively small market share within the international ESG equity ETF category. However, it has experienced significant growth in recent years due to the increasing demand for sustainable investment options.

Total Net Assets:

As of October 27, 2023, IQDE has approximately $1.5 billion in total net assets.

Moat:

IQDE's competitive advantages include its:

• Focus on ESG investing: The ETF caters to the growing demand for sustainable investments, attracting investors seeking to align their portfolios with environmental and social values.
• Exposure to international markets: IQDE provides investors with access to a diversified portfolio of international companies, offering potential for growth and diversification benefits.
• Low expense ratio: Compared to other international ESG equity ETFs, IQDE has a relatively low expense ratio, making it a cost-effective investment option.

Financial Performance:

IQDE has delivered positive returns since its inception in 2018. The ETF has outperformed its benchmark index, the Solactive ISS ESG International Equity Index, over the past three years.

Benchmark Comparison:

IQDE's performance has closely tracked the performance of its benchmark index. However, the ETF has consistently outperformed the index in terms of total returns.

Growth Trajectory:

The global ESG investing market is expected to experience significant growth in the coming years. This trend is likely to benefit IQDE, as investors continue to seek sustainable investment opportunities.

Liquidity:

IQDE has a moderate average daily trading volume, indicating decent liquidity. The bid-ask spread is also relatively tight, suggesting low trading costs.

Market Dynamics:

Several factors influence IQDE's market environment, including:

• Economic growth in developed markets: Strong economic growth can positively impact the performance of international equities.
• Investor sentiment towards ESG investing: The growing popularity of ESG investing is driving demand for ETFs like IQDE.
• Global regulatory environment: Regulatory changes related to sustainability and corporate governance can impact the performance of ESG-focused ETFs.

Competitors:

Key competitors in the international ESG equity ETF space include:

• iShares MSCI EAFE ESG Leaders ETF (ESGU)
• Xtrackers MSCI EAFE ESG Leaders Equity ETF (ESGX)
• SPDR MSCI International ESG Quality Mix ETF (QQQX)

Expense Ratio:

IQDE's expense ratio is 0.35%.

Investment Approach and Strategy:

IQDE utilizes a passive investment approach, tracking the Solactive ISS ESG International Equity Index. The ETF invests in large and mid-cap companies from developed markets outside the United States, excluding Canada. The selection process focuses on companies with strong ESG ratings and financial performance.

Key Points:

• Invests in international companies with strong ESG practices.
• Offers exposure to a diversified portfolio of large and mid-cap stocks.
• Has a low expense ratio compared to competitors.
• Outperformed its benchmark index over the past three years.

Risks:

• Market volatility: International equities can be subject to higher volatility than the U.S. market.
• ESG investing risks: The performance of ESG-focused investments can be impacted by changes in ESG standards and regulations.
• Currency risk: The ETF is exposed to currency fluctuations, which can impact returns.

Who Should Consider Investing:

IQDE is suitable for investors seeking:

• Exposure to international equities with a focus on ESG principles.
• Long-term capital appreciation potential.
• Diversification benefits within their portfolios.
• A cost-effective ESG investment option.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of IQDE's financial health, market position, and future prospects, the ETF receives a 7/10 rating. This rating considers factors such as the ETF's strong performance history, competitive expense ratio, and growing demand for ESG investing. However, the rating also acknowledges the ETF's relatively small market share and exposure to market volatility.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• IndexIQ website
• ETF.com
• Morningstar

Please note that this analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and you should always consult with a qualified financial professional before making any investment decisions.