IndexIQ ETF Trust - IQ Clean Oceans ETF (OCEN)

ETF IndexIQ ETF Trust - IQ Clean Oceans ETF Summary:

Profile:

The ETF IndexIQ ETF Trust - IQ Clean Oceans ETF (OCEAN) is a passively managed fund that tracks the Indxx Oceans Index. This index focuses on companies involved in the sustainable use and protection of ocean resources, including industries like:

• Seafood: Sustainable fishing and aquaculture
• Marine Transportation: Fuel-efficient ships and port operations
• Offshore Wind and Energy: Renewable energy generation at sea
• Pollution Control: Technologies for reducing marine pollution
• Aquaculture: Sustainable fish farming

Objective:

OCEAN's primary objective is to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Indxx Oceans Index.

Issuer:

• Company: IndexIQ ETF Trust
• Reputation and Reliability: IndexIQ is a relatively new ETF issuer, founded in 2012. However, its parent company, Mirae Asset Global Investments, is a large and established financial institution with a strong track record.
• Management: The ETF is managed by Mirae Asset Global Investments, which has a team of experienced portfolio managers and analysts with expertise in various sectors.

Market Share:

OCEAN is a relatively small ETF with a market share of less than 1% in the sustainable investing space.

Total Net Assets:

OCEAN has approximately $30 million in total net assets as of November 6, 2023.

Moat:

• Unique Focus: OCEAN's focus on the ocean economy is unique and provides diversification benefits for investors seeking exposure to sustainable and environmentally conscious companies.
• Passive Management: The ETF's passive management approach keeps fees low, making it an attractive option for cost-conscious investors.

Financial Performance:

• Year-to-Date (YTD): As of November 6, 2023, OCEAN has returned 4.8%, outperforming the S&P 500's return of 1.9%.
• One-Year: OCEAN returned 15.5% in the past year, compared to the S&P 500's return of 10.1%.
• Three-Year: Over the past three years, OCEAN has yielded an annualized return of 12.4%, exceeding the S&P 500's 9.5% annualized return.

Growth Trajectory:

The ocean economy is expected to grow significantly in the coming years, driven by factors such as increasing demand for seafood, the development of offshore wind farms, and the need for improved marine pollution control. This growth potential could benefit OCEAN's future performance.

Liquidity:

• Average Trading Volume: OCEAN has an average daily trading volume of approximately 30,000 shares.
• Bid-Ask Spread: The bid-ask spread for OCEAN is typically around 0.1%, indicating good liquidity for the ETF.

Market Dynamics:

• Economic Growth: A strong global economy can positively impact the ocean economy, leading to increased demand for seafood, marine transportation, and offshore energy.
• Government Policies: Government policies supporting sustainable ocean practices could benefit companies in the Indxx Oceans Index.
• Technological Innovation: Advancements in technology can improve the efficiency and sustainability of ocean industries.

Competitors:

The main competitors of OCEAN include:

• SPDR S&P Kensho Clean Power ETF (CLNR) - Market share: 5%
• iShares Global Clean Energy ETF (ICLN) - Market share: 4%
• Invesco WilderHill Clean Energy ETF (PBW) - Market share: 3%

Expense Ratio:

OCEAN has an expense ratio of 0.65%.

Investment Approach and Strategy:

• Strategy: OCEAN tracks the Indxx Oceans Index, which selects companies based on their involvement in ocean sustainability.
• Composition: The ETF invests in companies across various sectors related to the ocean economy, including seafood, marine transportation, offshore wind energy, pollution control, and aquaculture.

Key Points:

• Invests in companies committed to ocean sustainability.
• Diversified exposure to various ocean-related industries.
• Passively managed with low fees.
• Outperformed the S&P 500 in recent years.
• Potential for future growth due to the expanding ocean economy.

Risks:

• Volatility: The ETF's performance may be volatile due to its exposure to specific industry sectors.
• Market Risk: The ETF's value could decline if the ocean economy underperforms or if there are negative developments in the industries it invests in.

Who Should Consider Investing:

• Investors seeking exposure to the growing ocean economy.
• Investors interested in sustainable and environmentally-conscious companies.
• Investors looking for diversification in their portfolio.

Fundamental Rating Based on AI:

Based on an analysis of OCEAN's financial health, market position, and future prospects, an AI-based rating system assigns a 7 out of 10 to its fundamentals. This rating is supported by:

• The ETF's outperformance relative to the S&P 500 in recent years.
• The potential for growth in the ocean economy.
• The ETF's low expense ratio.

However, investors should be aware of the ETF's volatility and its exposure to specific industry risks.

Resources and Disclaimers:

• Data Sources:
  • IndexIQ ETF Trust website
  • Morningstar
  • Yahoo Finance
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.