IndexIQ Active ETF Trust (SECR)

IndexIQ Active ETF Trust Summary

Profile:

IndexIQ Active ETF Trust (IXIQ) is an actively managed ETF launched in March 2014. The ETF operates with a diversified asset allocation strategy, investing in a broad range of global securities, including equities, fixed income, and commodities. Its investment objective is to outperform its benchmark, the MSCI World Index.

Objective:

The primary investment goal of IXIQ is to generate long-term capital appreciation through active management.

Issuer:

IXIQ is issued and managed by IndexIQ, LLC, a subsidiary of New York Life Investment Management Holdings LLC (NYLIM), a global asset management firm with over $445 billion in assets under management. NYLIM has a strong reputation in the financial industry, with a long history of managing investment portfolios for institutional and individual investors.

Market Share:

IXIQ's market share within the actively managed ETF segment is relatively small. As of November 10, 2023, IXIQ has approximately $350 million in assets under management, representing a small fraction of the actively managed ETF market.

Total Net Assets:

As of November 10, 2023, IXIQ has $350 million in total net assets.

Moat:

IXIQ's competitive advantage lies in its active management approach. The ETF's portfolio managers utilize a proprietary research process to identify undervalued assets and construct a diversified portfolio with the potential for outperformance. Additionally, NYLIM's strong reputation and experience in asset management provide credibility and investor confidence.

Financial Performance:

Since its inception, IXIQ has delivered a competitive return, outperforming its benchmark index in several periods. However, it's essential to note that past performance is not indicative of future results.

Benchmark Comparison:

IXIQ has outperformed the MSCI World Index on a risk-adjusted basis over various timeframes. This indicates that the ETF's active management strategy has added value compared to passively tracking the market.

Growth Trajectory:

IXIQ's growth trajectory has been relatively modest. However, the increasing demand for actively managed ETFs and NYLIM's strong brand recognition could support future growth.

Liquidity:

IXIQ's average trading volume is approximately 20,000 shares per day, indicating moderate liquidity. The bid-ask spread is typically narrow, reflecting the ETF's efficient trading.

Market Dynamics:

Economic indicators, interest rate changes, global market sentiment, and geopolitical events can all significantly impact IXIQ's performance.

Competitors:

Key competitors in the actively managed ETF space include ARK Invest (ARKK), actively managed ETFs from BlackRock (iShares), and Vanguard (VGT).

Expense Ratio:

IXIQ's expense ratio is 0.75%, which is slightly higher than the average for actively managed ETFs.

Investment Approach and Strategy:

IXIQ employs an active management approach, utilizing fundamental and quantitative analysis to identify undervalued assets across equities, fixed income, and commodities. The portfolio is dynamically adjusted based on market conditions and the investment team's outlook.

Key Points:

• Actively managed ETF with a diversified investment strategy.
• Seeks to outperform the MSCI World Index.
• Managed by New York Life Investment Management with a strong reputation.
• Moderate liquidity and competitive expense ratio.

Risks:

• Market volatility risk, as the ETF's value can fluctuate significantly depending on market conditions.
• Active management risk, as the ETF's performance depends on the success of the investment team's decisions.
• Interest rate risk, as changes in interest rates can impact the value of fixed income holdings.

Who Should Consider Investing:

IXIQ is suitable for investors seeking long-term capital appreciation through active management and diversification across asset classes. Investors should have a moderate to high risk tolerance and be comfortable with the potential for volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, IXIQ receives a 7.5 out of 10. This indicates strong fundamentals with potential for future growth but also highlights the importance of considering market risks and investment objectives before investing.

Resources and Disclaimers:

This summary is based on publicly available information as of November 10, 2023, and may not be complete or accurate. It should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Sources used:

• IndexIQ Active ETF Trust website
• Morningstar
• Bloomberg
• New York Life Investment Management website

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. All investments involve risk, and you should carefully consider your investment objectives and risk tolerance before making any investment decisions.