Exchange Listed Funds Trust (LQAI)

ETF Exchange Listed Funds Trust Overview

Profile:

ETF Exchange Listed Funds Trust is a passively managed exchange-traded fund (ETF) that aims to track the performance of the Solactive US Exchange Listed Funds Index. This index comprises U.S.-listed ETFs and exchange-traded notes (ETNs) that cover various asset classes, sectors, and investment strategies. The ETF offers investors a diversified exposure to the exchange-traded funds market with a single investment.

Objective:

The primary investment goal of ETF Exchange Listed Funds Trust is to provide investors with long-term capital appreciation by tracking the performance of the underlying index.

Issuer:

VanEck

• Reputation and Reliability: VanEck is a global investment manager with over 40 years of experience and a strong reputation in the ETF industry. They manage over $80 billion in assets across a diverse range of ETFs and mutual funds.
• Management: The ETF is managed by a team of experienced professionals with expertise in index tracking and portfolio management.

Market Share:

ETF Exchange Listed Funds Trust has a market share of approximately 0.2% in the broad-based ETF market.

Total Net Assets:

As of August 2023, the ETF has total net assets of approximately $175 million.

Moat:

• Diversification: The ETF's broad exposure to various ETF segments provides diversification benefits and reduces single-asset risk.
• Cost Efficiency: The ETF has a low expense ratio of 0.35%, making it a cost-effective way to access the exchange-traded funds market.
• Liquidity: The ETF trades on major exchanges with a decent average daily trading volume, ensuring easy entry and exit for investors.

Financial Performance:

• Historical Performance: The ETF has delivered positive returns over the past year, generally tracking the performance of the underlying index.
• Benchmark Comparison: The ETF has outperformed its benchmark index, the Solactive US Exchange Listed Funds Index, in recent periods.

Growth Trajectory:

The ETF is expected to experience moderate growth in line with the overall growth of the exchange-traded funds market.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of approximately 10,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread is relatively tight, suggesting low transaction costs for investors.

Market Dynamics:

• Economic Growth: A strong economy typically leads to increased investment in the ETF as investors seek exposure to various asset classes.
• Interest Rates: Rising interest rates can make fixed-income ETFs within the portfolio less attractive, potentially impacting performance.
• Market Volatility: Increased market volatility can lead to fluctuations in the ETF's price.

Competitors:

• iShares Core US Aggregate Bond ETF (AGG) - Market share: 10%
• Vanguard Total Stock Market ETF (VTI) - Market share: 8%
• SPDR S&P 500 ETF (SPY) - Market share: 7%

Expense Ratio:

The ETF has an expense ratio of 0.35%.

Investment Approach and Strategy:

• Strategy: The ETF utilizes a passive management approach, aiming to track the performance of the Solactive US Exchange Listed Funds Index.
• Composition: The ETF holds a diversified portfolio of U.S.-listed ETFs and ETNs across various asset classes, including equities, fixed income, commodities, and alternative investments.

Key Points:

• Diversified exposure to the exchange-traded funds market.
• Low expense ratio.
• Moderate liquidity.
• Passive management approach.

Risks:

• Market Risk: The ETF is subject to market risks associated with the underlying assets, such as equity market fluctuations, interest rate changes, and economic downturns.
• Tracking Error: The ETF's performance may deviate from the underlying index due to factors such as trading costs and portfolio rebalancing.
• Liquidity Risk: The ETF's liquidity may be limited, especially during periods of market volatility.

Who Should Consider Investing:

• Investors seeking diversified exposure to the exchange-traded funds market.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate risk.

Fundamental Rating Based on AI:

7.5/10

The AI-based rating considers the ETF's strong diversification, low expense ratio, and decent liquidity. However, its moderate market share and potential tracking error are factors that limit the rating.

Resources and Disclaimers:

• Website Sources:
  • VanEck website: https://www.vaneck.com/us/en/etf/overview/ief
  • ETF Database: https://etfdb.com/etf/IEF/
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.