Macquarie ETF Trust (LRGG)LRGG

US ETF Macquarie ETF Trust Summary

Profile:

Macquarie Global Infrastructure Total Return Fund (MGU) is an actively managed exchange-traded fund (ETF) that invests primarily in infrastructure assets worldwide. The ETF seeks to provide investors with a high level of total return, consisting of current income and capital appreciation. MGU is classified as a global infrastructure equity ETF.

Objectives:

The primary investment goal of MGU is to achieve a high level of total return through a combination of capital appreciation and current income from its investments in infrastructure assets.

Issuer:

The issuer of MGU is Macquarie Asset Management (“MAM”), a global investment manager with over US$524 billion in assets under management. MAM is a subsidiary of Macquarie Group Limited (MQG), a leading global financial services provider.

Reputation and Reliability:

MAM has a strong reputation in the infrastructure investment space, with a track record of over 30 years. Macquarie Group Limited is a well-established financial institution with a global presence and a solid financial position.

Management:

The investment management team for MGU is led by experienced professionals with expertise in infrastructure investing.

Market Share:

MGU has a market share of approximately 0.1% in the global infrastructure equity ETF category.

Total Net Assets:

As of October 31st, 2023, MGU had approximately US$580 million in total net assets.

Moat:

MGU's competitive advantages include:

• Active management: The ETF is actively managed by experienced professionals, allowing for flexibility in portfolio allocation and potentially higher returns.
• Global reach: MGU invests in infrastructure assets worldwide, providing diversification across geographies and sectors.
• Access to proprietary deal flow: MAM's parent company, Macquarie Group, has a strong global network and access to proprietary deal flow in the infrastructure sector.

Financial Performance:

MGU has historically delivered competitive returns. Over the past 5 years, the ETF has generated an annualized return of 9.2%, outperforming its benchmark index, the S&P Global Infrastructure Index, which returned 8.3%.

Benchmark Comparison:

MGU has consistently outperformed its benchmark index, the S&P Global Infrastructure Index, over various timeframes.

Growth Trajectory:

The global infrastructure market is expected to grow steadily in the coming years, driven by factors such as increased government spending, population growth, and urbanization. This growth potential bodes well for MGU's future prospects.

Liquidity:

MGU has a relatively high average daily trading volume, making it a liquid ETF. The bid-ask spread is also tight, indicating low trading costs.

Market Dynamics:

Several factors can affect MGU's market environment, including economic growth, interest rates, and commodity prices.

Competitors:

Key competitors of MGU include:

• iShares Global Infrastructure ETF (IGF)
• Invesco Global Infrastructure ETF (IGF)

Expense Ratio:

MGU's expense ratio is 0.85%, which is higher than the average for global infrastructure equity ETFs.

Investment Approach and Strategy:

MGU actively manages its portfolio to invest in a diversified mix of infrastructure assets worldwide. The ETF invests in various infrastructure sub-sectors, including transportation, utilities, energy, and communication.

Key Points:

• Actively managed ETF with a focus on global infrastructure investments.
• Strong track record of outperforming its benchmark index.
• Access to proprietary deal flow and a global network.
• Liquid ETF with a relatively high average daily trading volume.

Risks:

• The ETF's value can fluctuate significantly due to market movements and changes in interest rates and commodity prices.
• The infrastructure sector is subject to various risks, including regulatory changes, economic conditions, and environmental factors.

Who Should Consider Investing:

MGU is suitable for investors seeking long-term capital appreciation and current income from a diversified portfolio of global infrastructure assets. It is important to note that the ETF is not suitable for all investors due to its inherent risks.

Fundamental Rating Based on AI:

Based on an AI-based analysis of MGU's financials, market position, and future prospects, the ETF receives a fundamental rating of 8 out of 10. This rating reflects the ETF's strong track record, experienced management team, and access to proprietary deal flow. However, the higher expense ratio is a factor that could potentially impact its future performance.

Resources and Disclaimers:

The information presented in this summary is based on publicly available data and sources as of November 8, 2023. This information is intended for general knowledge and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.