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Upturn AI SWOT - About
IQ Merger Arbitrage ETF (MNA)
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Upturn Advisory Summary
04/01/2025: MNA (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type ETF | Historic Profit -0.72% | Avg. Invested days 40 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Volume (30-day avg) 34862 | Beta 0.09 | 52 Weeks Range 30.36 - 34.60 | Updated Date 04/2/2025 |
52 Weeks Range 30.36 - 34.60 | Updated Date 04/2/2025 |
Upturn AI SWOT
IQ Merger Arbitrage ETF
ETF Overview
Overview
The IQ Merger Arbitrage ETF (MNA) seeks investment results that correspond generally to the price and yield performance of the IQ Merger Arbitrage Index. It focuses on investing in companies that are the subject of a publicly announced merger, acquisition, or similar transaction.
Reputation and Reliability
IndexIQ is known for its alternative investment ETFs. They have a solid track record, though their market share isn't as large as some of the major ETF providers.
Management Expertise
IndexIQ's management team has experience in alternative investments and ETF management.
Investment Objective
Goal
To seek investment results that correspond generally to the price and yield performance of the IQ Merger Arbitrage Index.
Investment Approach and Strategy
Strategy: The ETF employs a merger arbitrage strategy, investing in companies involved in announced mergers or acquisitions.
Composition Primarily invests in stocks of companies involved in mergers or acquisitions. The portfolio is designed to profit from the spread between the target company's current price and the acquisition price.
Market Position
Market Share: MNA holds a considerable portion of the merger arbitrage ETF market, but precise real-time market share data varies and is not readily available in aggregate form for all competitors.
Total Net Assets (AUM): 447887216
Competitors
Key Competitors
- CSH Investment Grade Floating Rate ETF (FLOT)
- ProShares Merger ETF (MRGR)
Competitive Landscape
The merger arbitrage ETF market is relatively concentrated. MNA is the leader. MNA has the longest and most consistent track record in this niche. MRGR is much smaller but offers a similar strategy. Both ETF's aim to capitalize on the spread of companies involved in a merger or acquisition.
Financial Performance
Historical Performance: Past performance is not indicative of future results. The ETF's performance is tied to the success rate and timelines of mergers and acquisitions.
Benchmark Comparison: The ETF's benchmark is the IQ Merger Arbitrage Index. Performance should be compared against this index to assess tracking efficiency.
Expense Ratio: 0.75
Liquidity
Average Trading Volume
MNA demonstrates moderate liquidity, which can be affected by market conditions; its average trading volume is in the tens of thousands of shares daily.
Bid-Ask Spread
The bid-ask spread is generally tight, around $0.01, indicating relatively low trading costs under normal conditions.
Market Dynamics
Market Environment Factors
Economic indicators, interest rates, regulatory environment, and merger activity levels all impact MNA's performance.
Growth Trajectory
Growth trends depend on overall merger and acquisition activity. Changes in holdings reflect completed deals and new merger announcements.
Moat and Competitive Advantages
Competitive Edge
MNA offers a pure-play merger arbitrage strategy, providing focused exposure to announced deals. Its competitive edge lies in its consistent application of this strategy. The fund attempts to capitalize on pricing inefficiencies. The team responsible for the fund have been in place for some time. This experience has been beneficial for fund performance.
Risk Analysis
Volatility
Volatility is generally lower than the broader equity market, as the ETF's returns are tied to the completion of deals, not broad market movements.
Market Risk
Risks include deal failure, regulatory hurdles, financing issues, and changes in market conditions that impact deal valuations.
Investor Profile
Ideal Investor Profile
Investors seeking to diversify their portfolio with a low-correlation asset class and those interested in generating returns from the completion of mergers and acquisitions.
Market Risk
Suitable for investors seeking a diversifier and not necessarily for active traders, but rather for those who have an understanding of arbitrage strategies and are willing to maintain a longer term holding period.
Summary
The IQ Merger Arbitrage ETF (MNA) aims to replicate the IQ Merger Arbitrage Index, investing in companies involved in announced mergers and acquisitions. It provides relatively low volatility and offers a potentially uncorrelated return stream relative to the broader market. Risks include deal failures and regulatory headwinds. MNA is suited for investors seeking diversification and exposure to merger arbitrage. Despite the fund being an interesting investment, its expense ratio is on the high side.
Similar Companies
- FLOT
- MRGR
- SPY
Sources and Disclaimers
Data Sources:
- IndexIQ website
- ETF.com
- Morningstar
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market share data is approximate and may vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About IQ Merger Arbitrage ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the investments included in its underlying index. The underlying index seeks to employ a systematic investment process designed to identify opportunities in companies whose equity securities trade in developed markets, including the U.S., and which are involved in announced mergers, acquisitions and other buyout-related transactions. The fund is non-diversified.
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