IndexIQ Active ETF Trust (SECR)

ETF IndexIQ Active ETF Trust Summary:

Profile:

The ETF IndexIQ Active ETF Trust is an actively managed exchange-traded fund launched in 2016. It invests in a diversified portfolio of US-listed equities across various sectors. The fund employs a quantitative approach to stock selection, aiming to outperform the S&P 500 Index.

Objective:

The primary objective of the ETF is to provide investors with long-term capital appreciation through active management and a focus on outperforming the S&P 500.

Issuer:

The ETF is issued and managed by IndexIQ, a subsidiary of the New York Life Investment Management Holdings LLC. New York Life Investment Management is a leading asset manager with over $289 billion in assets under management and a long-standing reputation for financial stability and expertise.

Market Share:

The ETF holds a relatively small market share within the actively managed US equity ETF space, with approximately 0.25% of the total assets.

Total Net Assets:

As of October 26, 2023, the ETF has approximately $234 million in total net assets.

Moat:

The ETF's competitive advantage lies in its active management approach, utilizing quantitative models and experienced portfolio managers to identify and invest in undervalued companies. Additionally, its focus on a diversified portfolio across various sectors aims to mitigate risk and enhance long-term returns.

Financial Performance:

Since its inception, the ETF has delivered a positive return, outperforming the S&P 500 Index on an annualized basis. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The ETF has experienced steady growth in assets under management over the past few years, indicating increasing investor interest in its active management approach.

Liquidity:

The ETF has an average daily trading volume of approximately 25,000 shares, ensuring reasonable liquidity for investors looking to buy or sell their shares. The bid-ask spread is typically tight, reflecting the ETF's efficient trading.

Market Dynamics:

The ETF's performance is influenced by various market factors such as economic growth, interest rate changes, sector performance, and overall market sentiment. It is crucial for investors to stay informed about these factors and their potential impact on the ETF's value.

Competitors:

Key competitors in the actively managed US equity ETF space include IVV (iShares Core S&P 500), SPY (SPDR S&P 500 ETF Trust), and VOO (Vanguard S&P 500 ETF). These ETFs offer similar exposure to the S&P 500 but differ in their management styles and expense ratios.

Expense Ratio:

The ETF's expense ratio is 0.65%, which is slightly higher than some of its actively managed peers. However, the fund's active management approach and potential for outperformance may justify the higher expense ratio for some investors.

Investment Approach and Strategy:

The ETF employs a quantitative stock selection strategy, utilizing proprietary models to identify undervalued companies with strong growth potential. The portfolio is actively managed by experienced portfolio managers who can adjust holdings based on market conditions and their analysis.

Key Points:

• Actively managed ETF aiming to outperform the S&P 500.
• Diversified portfolio across various sectors.
• Experienced portfolio management team with a quantitative approach.
• Steady growth in assets under management.
• Competitive expense ratio compared to other actively managed ETFs.

Risks:

• Market risk associated with its underlying holdings.
• Volatility risk due to its active management approach.
• Potential for underperformance compared to the benchmark index.

Who Should Consider Investing:

Investors seeking active management, exposure to US equities, and potential for outperformance compared to the S&P 500 may find this ETF suitable for their portfolio.

Fundamental Rating Based on AI:

Based on an AI analysis of financial health, market position, and future prospects, ETF IndexIQ Active ETF Trust receives a 7 out of 10 fundamental rating. The analysis highlights the fund's solid financial position, experienced management team, and potential for future growth. However, investors should be mindful of the risks associated with active management and market volatility.

Resources and Disclaimers:

This summary utilizes information from the ETF's website, IndexIQ, and Bloomberg. It is crucial to conduct independent research and consult with a financial advisor before making investment decisions.