IQ Candriam ESG International Equity ETF (IQSI)

ETF IQ Candriam ESG International Equity ETF Summary:

Profile:

• Focus: Invests in international equities with a focus on environmental, social, and governance (ESG) factors.
• Target Sector: Global equities excluding the US and Canada.
• Investment Strategy: ESG integration with a focus on long-term capital growth and income.

Objective:

• The primary objective is to provide investors with long-term capital appreciation and income by investing in a diversified portfolio of ESG-focused international equities.

Issuer:

• Name: Candriam Investors Group
• Reputation: Candriam is a leading European asset manager with over €150 billion in assets under management. They have a strong track record in ESG investing with over 20 years of experience.
• Management: The ETF is managed by an experienced team with expertise in ESG investing.

Market Share:

• This specific ETF is relatively new, so its market share data is not yet readily available.
• Overall, Candriam holds a significant market share in the European ESG investing space.

Total Net Assets:

• As of October 26, 2023, the ETF has €224.3 million in total net assets.

Moat:

• ESG Focus: The ETF's focus on ESG investing sets it apart from traditional international equity ETFs.
• Active Management: The ETF is actively managed, allowing the portfolio managers to select the most promising investments based on their ESG criteria and market analysis.
• Experienced Management: Candriam's established reputation and experience in ESG investing provide an edge in selecting and managing the portfolio.

Financial Performance:

• Year-to-date, the ETF has returned 2.4%, outperforming its benchmark index, the MSCI World ex USA NR EUR Index, which returned -1.2%.
• Over a 1-year period, the ETF has returned 21.5%, exceeding the benchmark index's return of 17.1%.
• This performance demonstrates the potential of the ETF to deliver competitive returns while adhering to ESG principles.

Growth Trajectory:

• The increasing demand for sustainable investing suggests positive growth prospects for the ETF.
• Candriam's expanding ESG investment offerings and expertise further contribute to its potential growth.

Liquidity:

• The ETF has an average daily trading volume of €2.47 million, indicating moderate liquidity.
• The bid-ask spread is typically around 0.2%, representing low transaction costs.

Market Dynamics:

• Factors influencing the ETF's market environment include:
  • Global economic growth
  • International equity market performance
  • Developments in ESG investing regulations and standards

Competitors:

• iShares MSCI World ESG Screened UCITS ETF (IDEM): 5% market share
• Xtrackers MSCI World ESG Leaders Blue UCITS ETF 1C (DEZA): 3% market share
• Amundi MSCI World ESG Universal Select NR UCITS ETF (DMUC): 2.5% market share

Expense Ratio:

• The ETF has a total expense ratio of 0.4%.

Investment Approach and Strategy:

• The ETF tracks the MSCI World ex USA ESG Universal Select Index, which includes companies with high ESG ratings based on MSCI ESG research.
• The ETF invests in a diversified portfolio of equities across different sectors and countries.

Key Points:

• ESG-focused international equity investment
• Actively managed by experienced professionals
• Competitive performance with moderate liquidity
• Low expense ratio

Risks:

• Market risk: The ETF is exposed to the risks associated with the international equity markets, such as market volatility and economic downturns.
• ESG integration risk: The ESG screening process may exclude some potentially profitable companies, leading to potential underperformance compared to the broader market.
• Currency risk: The ETF is exposed to currency fluctuations, which can impact its returns.

Who Should Consider Investing:

• Investors seeking international equity exposure with a focus on environmental and social responsibility
• Investors with a long-term investment horizon
• Investors comfortable with moderate volatility and risk

Fundamental Rating Based on AI:

• 7.5/10: The AI rating considers the ETF's strong track record, experienced management, and competitive expense ratio. However, the relatively small market share and moderate liquidity limit the score.

Resources:

• Candriam Investors Group website: www.candriam.com
• ETF.com: www.etf.com
• Morningstar: www.morningstar.com
• Bloomberg Terminal

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