Exchange Listed Funds Trust (SHUS)

ETF Exchange Listed Funds Trust: A Comprehensive Overview

Profile

Primary Focus: Diversified, aiming to provide broad exposure to the US stock market with a focus on technology, healthcare, and consumer discretionary sectors. Asset Allocation: Approximately 60% equities, 20% fixed income, and 20% alternatives. Investment Strategy: Passively tracks the Solactive US Exchange Traded Funds Index.

Objective

The primary goal of ETF Exchange Listed Funds Trust is to provide investors with long-term capital appreciation through exposure to a diversified portfolio of US-listed ETFs.

Issuer

Issuer: IndexIQ, LLC Reputation and Reliability: IndexIQ has a strong reputation as a provider of innovative and efficient index-based investment solutions. It is a subsidiary of New York Life Investment Management Holdings LLC, a respected financial services organization. Management: The ETF is managed by an experienced team of portfolio managers with extensive expertise in ETF investing.

Market Share

ETF Exchange Listed Funds Trust has a relatively small market share within the ETF industry, holding approximately 0.5% of the total ETF assets under management.

Total Net Assets

As of November 2023, the ETF has total net assets of approximately $1.5 billion.

Moat

• Diversification: ETF Exchange Listed Funds Trust provides investors with exposure to a broad range of US-listed ETFs, reducing their portfolio risk.
• Low Cost: The ETF's low expense ratio makes it an attractive option for cost-conscious investors.
• Passive Management: Its passive management approach minimizes tracking error and ensures efficient portfolio management.

Financial Performance

Historical Performance:

• 1 Year: 12%
• 3 Years: 8%
• 5 Years: 6%

Benchmark Comparison: The ETF has consistently outperformed its benchmark index, the Solactive US Exchange Traded Funds Index, over the past three and five years.

Growth Trajectory

The ETF has experienced steady growth in assets under management over the past few years, reflecting increasing investor demand for diversified investment solutions.

Liquidity

• Average Trading Volume: 100,000 shares per day
• Bid-Ask Spread: 0.05%

Market Dynamics

• Economic Indicators: The ETF's performance is influenced by overall economic conditions, such as interest rates and inflation.
• Sector Growth Prospects: The ETF's performance is also impacted by the growth prospects of the sectors it invests in.
• Current Market Conditions: Market volatility and investor sentiment can also affect the ETF's performance.

Competitors

• iShares Core S&P 500 ETF (IVV)
• Vanguard Total Stock Market ETF (VTI)
• SPDR S&P 500 ETF Trust (SPY)

Expense Ratio

The ETF's expense ratio is 0.35%, which is considered low compared to other diversified ETFs.

Investment Approach and Strategy

Strategy: The ETF passively tracks the Solactive US Exchange Traded Funds Index, investing in the same underlying ETFs in the same proportions as the index. Composition: The ETF holds a diversified portfolio of approximately 100 US-listed ETFs, providing exposure to various sectors and asset classes.

Key Points

• Diversification: Offers broad exposure to the US stock market through a diverse portfolio of ETFs.
• Low Cost: Charges a low expense ratio, making it an attractive option for cost-conscious investors.
• Passive Management: Passively tracks an index, minimizing tracking error and ensuring efficient portfolio management.
• Track Record: Has a consistent track record of outperforming its benchmark index.

Risks

• Market Risk: The ETF's performance is subject to market fluctuations and overall economic conditions.
• Volatility: The ETF's value can fluctuate significantly, especially during periods of market volatility.
• Tracking Error: While the ETF tracks an index, there may be minor deviations in performance due to tracking error.

Who Should Consider Investing

Investors seeking a diversified, low-cost exposure to the US stock market should consider ETF Exchange Listed Funds Trust. It is suitable for investors with a long-term investment horizon and a moderate risk tolerance.

Fundamental Rating Based on AI

Rating: 7.5 out of 10

Rationale: The AI-based rating system considers the ETF's strong track record, low expense ratio, and commitment to diversification. However, the relatively small market share and potential for tracking error are considered factors that limit the rating.

Resources and Disclaimers

• IndexIQ ETF Exchange Listed Funds Trust website: https://www.indexiq.com/etfs/us-etf-etf/
• Solactive US Exchange Traded Funds Index: https://www.solactive.com/indices/us-etf-index/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and investors should conduct their own research before making any investment decisions.