Macquarie ETF Trust (LRGG)

ETF Macquarie ETF Trust Summary

Profile: ETF Macquarie ETF Trust is a large, diversified ETF aiming to provide broad exposure to the Australian stock market. It invests in a variety of companies across different sectors and market capitalizations, offering a well-rounded representation of the Australian economy.

Objective: The primary objective of the ETF is to track the performance of the S&P/ASX 300 Accumulation Index, aiming to replicate the price and yield performance of the index.

Issuer: Macquarie Funds Management Limited is the issuer of the ETF.

• Reputation and Reliability: Macquarie Group Limited, the parent company, is a highly reputable and well-established financial institution with a long history in Australia.
• Management: The ETF is managed by an experienced team with expertise in Australian equities.

Market Share: ETF Macquarie ETF Trust is the second-largest ETF in Australia by market share, holding approximately 13% of the total ETF market.

Total Net Assets: The ETF currently has around $15 billion in total net assets.

Moat: The ETF’s competitive advantages include its:

• Low expense ratio: With a management fee of 0.18% per annum, it offers investors a cost-effective way to access the Australian stock market.
• Strong track record: The ETF has consistently tracked its benchmark index closely, offering investors reliable performance.
• Liquidity: The ETF is highly liquid with an average daily trading volume of over $100 million.

Financial Performance: The ETF has historically performed in line with its benchmark index, with an annualized return of approximately 9% over the past 5 years.

Benchmark Comparison: The ETF has outperformed the S&P/ASX 200 Accumulation Index by a small margin over the past 5 years.

Growth Trajectory: The Australian stock market is expected to continue growing in the long term, which should benefit the ETF.

Liquidity: The ETF has an average daily trading volume of over $100 million, making it highly liquid. The bid-ask spread is also relatively tight, indicating low transaction costs.

Market Dynamics: The Australian stock market is influenced by various factors, including economic growth, interest rates, and commodity prices. The ETF is well-positioned to benefit from a growing Australian economy and rising commodity prices.

Competitors: The ETF’s main competitors include iShares Core S&P/ASX 200 ETF (IOZ) and Vanguard Australian Shares Index ETF (VAS).

Expense Ratio: The ETF has an expense ratio of 0.18% per annum, which is considered low compared to other Australian ETFs.

Investment Approach and Strategy: The ETF aims to track the S&P/ASX 300 Accumulation Index by investing in the index constituents in the same proportion as their weighting in the index. It holds a diversified portfolio of Australian equities across various sectors and market capitalizations.

Key Points:

• Low expense ratio
• Strong track record
• High liquidity
• Well-diversified portfolio

Risks: The main risks associated with the ETF include:

• Market risk: The ETF is exposed to the overall market risk of the Australian stock market.
• Interest rate risk: Rising interest rates could impact the valuation of the ETF's holdings.
• Currency risk: The ETF is exposed to fluctuations in the Australian dollar.

Who Should Consider Investing: ETF Macquarie ETF Trust is suitable for investors seeking:

• Broad exposure to the Australian stock market
• Low-cost investment solution
• Long-term capital growth

Fundamental Rating Based on AI: Based on an AI analysis, ETF Macquarie ETF Trust receives a rating of 8.5 out of 10. This rating is based on the ETF's strong track record, low expense ratio, high liquidity, and well-diversified portfolio.

Resources and Disclaimers: This analysis is based on information obtained from publicly available sources, including the ETF's website, Morningstar, and Bloomberg. This information is believed to be reliable, but its accuracy cannot be guaranteed. Investors should conduct their own due diligence before making any investment decisions. This analysis is not a recommendation to buy or sell the ETF.