Iq Candriam ESG U.S. Mid Cap Equity ETF (IQSM)

Overview

The Iq Candriam ESG U.S. Mid Cap Equity ETF (IQSU) seeks to provide investment results that correspond generally to the price and yield performance of the Candriam ESG North America Mid Cap Index. It focuses on U.S. mid-cap companies with strong environmental, social, and governance (ESG) profiles.

Reputation and Reliability

IndexIQ is known for its innovative ETF offerings and a commitment to providing sophisticated investment solutions. Their reputation is generally solid, though their ETF lineup is smaller compared to giants like BlackRock or Vanguard.

Management Expertise

IndexIQ's management team has experience in developing and managing a variety of ETFs, including those focused on ESG factors. Their expertise is considered adequate for this type of product.

Goal

To track the Candriam ESG North America Mid Cap Index, which screens U.S. mid-cap companies based on ESG criteria.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to replicate the performance of the Candriam ESG North America Mid Cap Index.

Composition Primarily composed of U.S. mid-cap equities that meet the index's ESG criteria. Sector allocation will vary based on the index composition.

Market Share: IQSU has a relatively small market share compared to broader mid-cap ETFs and those that focus on ESG. Precise market share data is unavailable, but is estimated to be less than 1%.

Total Net Assets (AUM): 33674636

Key Competitors

• XJH (N/A)
• ESGM (N/A)
• SUSM (N/A)

Competitive Landscape

The ETF industry for mid-cap ESG investing is competitive. IQSU faces competition from larger, more established ETFs with greater brand recognition and AUM. A key advantage of IQSU could be its specific index methodology, while a disadvantage is its smaller size which may affect liquidity.

Historical Performance: Historical performance data is not available here, so refer to official fund documents.

Benchmark Comparison: To assess its effectiveness, one would compare IQSU's performance to that of the Candriam ESG North America Mid Cap Index.

Expense Ratio: 0.3

Average Trading Volume

Average trading volume is relatively low, potentially impacting ease of entry and exit.

Bid-Ask Spread

The bid-ask spread can vary but it can be wider compared to more liquid ETFs due to the lower trading volume.

Market Environment Factors

Economic growth, interest rates, inflation, and regulatory changes related to ESG investing can all influence IQSU's performance. Demand for ESG investments is also a key factor.

Growth Trajectory

Growth is dependent on the broader market for mid-cap equities and increasing investor interest in ESG-focused investments. Changes to the underlying index methodology could also affect its trajectory.

Competitive Edge

IQSU's competitive advantage lies in its focused approach to ESG within the U.S. mid-cap space through a specific Candriam Index. It offers investors a targeted way to align their investments with ESG principles. This provides a unique offering to investors seeking a specific ESG factor, which in turn makes it a possible investment option. It screens specifically for US Mid-Cap equities and their ESG ratings to provide the customer with the investment they desire.

Volatility

Volatility is linked to that of the underlying mid-cap equities and could change depending on market factors.

Market Risk

Specific risks include the potential for underperformance compared to broader mid-cap indices if ESG factors are not rewarded by the market. There's also the risk of changes in the underlying index methodology and concentration risk within specific sectors.

Ideal Investor Profile

IQSU is best suited for investors who are committed to ESG principles and seeking exposure to U.S. mid-cap equities. They should have a moderate to long-term investment horizon.

Market Risk

It is suitable for long-term investors seeking a targeted ESG strategy, rather than active traders due to lower trading volume.

IQSU offers investors access to U.S. mid-cap equities with a focus on ESG. It seeks to replicate the Candriam ESG North America Mid Cap Index and offers a targeted approach to ESG investing. However, its AUM is low and as such its liquidity is low. Investors should consider the expense ratio and liquidity limitations when considering this ETF. Its target demographic is the ESG focused investor, but performance will be tied to those equities.

Data Sources:

• IndexIQ official website
• ETF.com
• Morningstar
• FactSet

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and a thorough understanding of the risks involved.