iShares International Country Rotation Active ETF (CORO)

Overview

The iShares International Country Rotation Active ETF (ICRO) is an actively managed ETF that aims to achieve capital appreciation by strategically allocating its investments across various developed and emerging international equity markets. It seeks to identify countries with favorable economic growth prospects and market momentum.

Reputation and Reliability

BlackRock, the issuer, is one of the world's largest asset managers, known for its extensive ETF offerings and strong reputation.

Management Expertise

BlackRock has a large and experienced team of investment professionals managing its ETFs, providing expertise in active management and international markets.

Goal

To achieve capital appreciation by strategically allocating investments across international equity markets.

Investment Approach and Strategy

Strategy: Actively managed, focusing on country rotation based on macroeconomic analysis and market momentum.

Composition Primarily holds equity securities of companies located in various international countries. The specific holdings and country allocations change based on market conditions.

Market Share: ICRO holds a niche market share within the actively managed international equity ETF space.

Total Net Assets (AUM): 33580000

Key Competitors

• Dimensional International Core Equity Market ETF (DFAI)
• Vanguard Total International Stock ETF (VXUS)
• Schwab International Equity ETF (SCHF)

Competitive Landscape

The international equity ETF market is highly competitive, with several passive and actively managed funds vying for investor capital. ICRO competes on its active management strategy, aiming to outperform passive benchmarks. Its smaller size and active management fees are disadvantages compared to larger, low-cost passive ETFs. Larger ETF's typically win the space because it is driven by management fee ratios as well as performance.

Historical Performance: Historical performance data is essential to evaluating performance over different timeframes.

Benchmark Comparison: Performance should be compared against a relevant international equity index to assess the effectiveness of the active management strategy.

Expense Ratio: 0.49

Average Trading Volume

The average trading volume affects order execution and ease of entry and exit in the ETF and it is moderate.

Bid-Ask Spread

The bid-ask spread is generally tight, which translates to modest trading costs.

Market Environment Factors

Economic growth in various international markets, changes in interest rates, currency fluctuations, and geopolitical events can all influence ICRO's performance.

Growth Trajectory

Growth trends depend on the success of the active country rotation strategy and the overall performance of international equity markets. Changes to strategy and holdings are actively managed.

Competitive Edge

ICRO's competitive advantage lies in its active country rotation strategy, aiming to capitalize on macroeconomic trends and market momentum. The ETF's management team uses a research-driven approach to identify countries with favorable growth prospects. BlackRock's established brand and expertise in active management also contribute to its competitive edge. However, the success of the strategy depends on the manager's skill in accurately predicting market movements.

Volatility

Volatility is dependent on the performance of the countries where the allocations of the ETF are held.

Market Risk

ICRO is subject to market risk associated with international equity investments, including fluctuations in currency exchange rates, political instability, and economic downturns in specific countries.

Ideal Investor Profile

Investors seeking capital appreciation through strategic allocation across international equity markets and who are comfortable with active management and potentially higher fees.

Market Risk

Best suited for investors with a long-term investment horizon and a higher risk tolerance due to the potential volatility of international equity markets.

ICRO is an actively managed international equity ETF that aims to generate capital appreciation through strategic country rotation. Its success relies on the expertise of its management team in identifying countries with favorable growth prospects. While the active management strategy offers the potential for outperformance, it also comes with higher fees and the risk of underperformance compared to passive benchmarks. The ETF is suitable for investors seeking international equity exposure and who are comfortable with active management and a potentially higher risk profile.

Data Sources:

• iShares website
• BlackRock website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor.