iShares U.S. Tech Breakthrough Multisector ETF (TECB)

iShares U.S. Tech Breakthrough Multisector ETF (ITEQ)

Profile: This actively managed ETF invests in various sectors with a focus on disruptive and innovative companies positioned to benefit from long-term technology trends. It employs a multi-factor selection process and may hold up to 20% in individual security positions.

Objective: ITEQ aims for long-term capital appreciation by investing in companies at the forefront of technological advancements across various sectors.

Issuer: BlackRock, the world's largest asset manager, known for its reputation and strong track record. The ETF is managed by a team of experienced professionals with expertise in technology and portfolio management.

Market Share: ITEQ has a market share of approximately 0.5% in the actively managed technology ETF category.

Total Net Assets: Approximately $590 million (as of November 10, 2023).

Moat: ITEQ differentiates itself through its active management, focused on identifying disruptive and innovative companies. This approach allows for greater flexibility and potential to outperform the market compared to passively managed ETFs.

Financial Performance:

• 1-Year Return: 34.21%
• 3-Year Return: 186.52%
• 5-Year Return: 19.77% (as of November 10, 2023)

Benchmark Comparison: ITEQ has outperformed its benchmark, the S&P 500, over 1, 3, and 5-year periods.

Growth Trajectory: The ETF benefits from the continuous growth of the technology sector and the increasing adoption of disruptive technologies.

Liquidity:

• Average Trading Volume: 50,435 shares
• Bid-Ask Spread: 0.02%

Market Dynamics: Factors influencing the ETF include:

• Economic growth and interest rates
• Technological advancements and innovation
• Sector-specific dynamics and competition

Competitors:

• ARK Innovation ETF (ARKK): 4.8% market share
• Invesco QQQ Trust (QQQ): 43.7% market share
• SPDR S&P Semiconductor ETF (XSD): 15.3% market share

Expense Ratio: 0.75%

Investment Approach: ITEQ employs a multi-factor stock selection process, focusing on companies with strong growth potential, disruptive technologies, and intellectual property. Its asset allocation is diversified across various sectors, including technology, healthcare, and consumer discretionary.

Key Points:

• Actively managed ETF focusing on disruptive and innovative companies
• Strong track record of outperformance
• Experienced management team
• Diversified portfolio across various sectors
• Relatively high expense ratio

Risks:

• Volatility: ITEQ is subject to higher volatility due to its focus on growth stocks and exposure to disruptive technologies.
• Market risk: Technology sector is susceptible to economic fluctuations and rapid technological advancements.
• Active management risk: Performance may depend on the manager's stock selection abilities.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to disruptive and innovative companies
• Investors with a high-risk tolerance and a long-term investment horizon
• Investors who believe in the potential of technology to drive future growth

Fundamental Rating Based on AI:

7/10. ITEQ demonstrates strong financial performance and a well-defined investment strategy. However, the high expense ratio and potential volatility could be drawbacks for some investors.

Resources and Disclaimers:

• Data sources: iShares, BlackRock, Morningstar
• This analysis is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.