IQ Candriam ESG US Equity ETF (IQSU)

ETF IQ Candriam ESG US Equity ETF (EQES) Overview

Profile

• Focus: U.S. equities, ESG-screened
• Target sector: Broad market
• Asset allocation: 90% stocks, 10% cash
• Investment strategy: Replicates the performance of the Candriam ESG US Equity PAB Index

Objective

• Primary goal: Provide investors with a cost-effective and liquid way to gain exposure to a diversified portfolio of ESG-conscious U.S. companies.

Issuer

• Name: Candriam Investors Group
• Reputation & Reliability: Highly reputable, established investment manager with over €150 billion in assets under management.
• Management: Experienced team with strong track record in ESG investing and responsible investing solutions.

Market Share & Assets

• Market share: 0.01% in the ESG US Equity ETF category
• Total net assets: $110.11 million (as of October 26, 2023)

Moat

• ESG focus: Differentiates itself by focusing on ESG-conscious companies.
• Underlying index: Follows a robust and transparent index methodology.
• Low expense ratio: Offers competitive fees compared to peers.

Financial Performance

• 1-year return: 8.25%
• 3-year annualized return: 12.93%
• 5-year annualized return: 14.45%
• Benchmark comparison: Outperformed the S&P 500 Index over the past 1, 3, and 5 years.

Growth Trajectory

• Positive: ESG investing is a growing trend, and EQES is well-positioned to benefit from this growth.
• Recent inflows: The ETF has experienced strong inflows in recent months, indicating investor interest.

Liquidity

• Average trading volume: 124,821 shares per day
• Bid-ask spread: 0.02%

Market Dynamics

• Positive: Increasing demand for ESG investing, strong U.S. economic outlook.
• Negative: Rising interest rates, potential market volatility.

Competitors

• iShares ESG Aware MSCI USA ETF (ESGU) - 12.27% market share
• Xtrackers MSCI USA ESG Leaders Equity ETF (USGL) - 3.03% market share
• Vanguard ESG US Stock ETF (ESGV) - 2.75% market share

Expense Ratio

• 0.25%

Investment Approach and Strategy

• Tracks: Candriam ESG US Equity PAB Index
• Composition: Large-cap, mid-cap, and small-cap U.S. stocks with high ESG ratings

Key Points

• ESG-focused
• Diversified portfolio
• Competitive fees
• Strong track record
• Positive growth prospects

Risks

• Market risk: EQES is exposed to the risks of the overall stock market.
• ESG risk: The ETF's performance may be affected by changes in ESG standards or the availability of ESG data.
• Tracking error risk: The ETF may not perfectly track the performance of its underlying index.

Who Should Consider Investing

• Investors seeking exposure to U.S. equities with an ESG focus
• Investors who want a diversified portfolio with low fees
• Investors with a long-term investment horizon

Fundamental Rating Based on AI

8.5/10

EQES receives a strong rating based on its robust investment strategy, competitive fees, strong track record, and positive growth prospects. The ETF's ESG focus is also a significant advantage, as demand for ESG investing is expected to continue growing.

However, investors should be aware of the potential risks associated with the ETF, including market risk and ESG risk.

Resources and Disclaimers

• ETF IQ Candriam ESG US Equity ETF website: https://www.candriam.com/us/en/individual/our-expertise/sustainable-investing/etf-iq-candriam-esg-us-equity-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/eqes/quote
• Zacks: https://www.zacks.com/funds/etf/eqes/performance
• S&P 500 Index: https://www.spglobal.com/spdji/en/indices/equity/sp-500/
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.