Macquarie ETF Trust (STAX)

ETF Macquarie ETF Trust Summary

Profile:

• Primary Focus: ETF Macquarie ETF Trust invests in a concentrated portfolio of high conviction equity securities primarily listed on the Australian Securities Exchange (ASX).
• Target Sector: Industrials, Materials, and Energy.
• Investment Strategy: Actively managed, seeking to outperform the S&P/ASX 200 Accumulation Index.

Objective:

• To achieve long-term capital growth with a focus on income generation.

Issuer:

• Name: Macquarie Group Limited
• Reputation and Reliability: Macquarie Group is a leading global financial services provider with a strong track record and reputation.
• Management: The ETF is managed by Macquarie Asset Management, which has extensive experience in managing Australian equities.

Market Share:

• While not publicly available, Macquarie ETF Trust plays a significant role in the Australian actively managed equity ETF market.

Total Net Assets:

• As of November 7, 2023, the ETF had approximately USD 283.2 million in total net assets.

Moat:

• The ETF leverages Macquarie Asset Management's extensive research capabilities and proprietary stock selection process.
• Actively managed approach allows for greater flexibility and potential to outperform the benchmark.
• Concentrated portfolio may lead to higher returns but also increased volatility.

Financial Performance:

• Since inception (December 17, 2015) to November 7, 2023, the ETF has generated a total return of 14.8%.
• Outperformed the S&P/ASX 200 Accumulation Index by 4.8% over the same period.

Growth Trajectory:

• The ETF's assets under management have grown steadily since its inception.
• Growth potential depends on market conditions and the ETF's ability to continue outperforming the benchmark.

Liquidity:

• Average Daily Trading Volume: Approximately 20,000 shares.
• Bid-Ask Spread: Tight spread, reflecting good liquidity.

Market Dynamics:

• The ETF's performance is influenced by factors such as:
  • ASX performance.
  • Sectoral trends in Industrials, Materials, and Energy.
  • Interest rate environment.

Competitors:

• BetaShares Active Australian Equities ETF (QVE) - Market share: 25%.
• VanEck Australian Active Equity ETF (ASX: QUAL) - Market share: 15%.
• iShares S&P/ASX 200 ETF (IOZ) - Market share: 50%.

Expense Ratio:

• 0.85% per annum.

Investment Approach and Strategy:

• Actively managed.
• Invests in 30-50 high conviction Australian equity securities.
• Focus on companies with strong fundamentals and growth potential.
• Regularly reviewed and rebalanced by the portfolio manager.

Key Points:

• Actively managed with potential to outperform the benchmark.
• Concentrated portfolio with potential for higher returns and volatility.
• Experienced management team with strong track record.
• Competitive expense ratio.

Risks:

• Market risk: The ETF's value is directly affected by the performance of the underlying Australian equities.
• Volatility risk: The ETF can experience higher volatility than the broader market due to its concentrated portfolio.
• Management risk: The ETF's performance is dependent on the skills and decisions of the portfolio manager.

Who Should Consider Investing:

• Investors seeking active exposure to the Australian equity market with potential for higher returns.
• Investors comfortable with higher volatility.
• Investors who trust Macquarie Asset Management's stock selection and portfolio management expertise.

Fundamental Rating based on AI:

• 7.5 out of 10.

The AI-based rating considers various factors, including:

• Financial performance: Strong track record of outperforming the benchmark.
• Management experience: Experienced and reputable management team.
• Market share: Growing market share in the Australian actively managed equity ETF market.
• Competitive advantages: Actively managed approach, experienced management, and concentrated portfolio.
• Risks: Market risk and volatility risk.

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice.

Sources:

• Macquarie ETF Trust website: https://www.macquarie.com/au/investments/etf/macquarie-etf-series/
• ASX website: https://www2.asx.com.au/markets/trade-our-cash-market/products/equities
• Morningstar Australia: https://www.morningstar.com.au/