Iq Candriam ESG U.S. Mid Cap Equity ETF (IQSM)

Overview

The Iq Candriam ESG U.S. Mid Cap Equity ETF (IQSM) seeks to provide investment results that correspond generally to the price and yield performance of the IQ Candriam ESG US Mid Cap Index. It focuses on U.S. mid-cap companies with strong ESG profiles.

Reputation and Reliability

New York Life Investment Management (NYLIM) is a well-established asset manager with a long history. They are known for their diversified investment offerings and commitment to responsible investing.

Management Expertise

NYLIM has a dedicated team of investment professionals with expertise in ESG analysis and portfolio management.

Goal

To track the IQ Candriam ESG US Mid Cap Index and provide investment results that correspond generally to the price and yield performance of the index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management investment approach, attempting to replicate the performance of the IQ Candriam ESG US Mid Cap Index.

Composition The ETF holds a diversified portfolio of U.S. mid-cap stocks that meet specific ESG criteria.

Market Share: Limited market share compared to larger, more established mid-cap ETFs and those with longer track records.

Total Net Assets (AUM): 14670000

Key Competitors

• XJH US ETF (IJH)
• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)

Competitive Landscape

The ETF market is highly competitive. IQSM differentiates itself through its specific ESG focus within the mid-cap space. Competitors have larger AUM and established brand recognition, offering greater liquidity but potentially different ESG screening methodologies.

Historical Performance: Historical performance data should be viewed in context of market cycles.

Benchmark Comparison: The ETF's performance should be compared to the IQ Candriam ESG US Mid Cap Index to evaluate tracking effectiveness.

Expense Ratio: 0.29

Average Trading Volume

The ETF's liquidity can be assessed by the average trading volume that is relatively low compared to other funds.

Bid-Ask Spread

The bid-ask spread reflects the cost of trading the ETF which can be comparatively wider due to lower trading volume.

Market Environment Factors

Economic indicators, sector growth in mid-cap companies, and overall market conditions impact ETF performance. Interest rates, inflation, and geopolitical events can also play a role.

Growth Trajectory

Growth is linked to the increasing investor demand for ESG-focused investments and the performance of the U.S. mid-cap market. Changes to index construction and holdings may occur periodically.

Competitive Edge

IQSM's competitive advantage lies in its specific focus on ESG criteria within the U.S. mid-cap equity market. The ETF caters to investors seeking both financial returns and positive social and environmental impact. Its ESG screening methodology may differ from competitors, potentially attracting investors who prefer its approach. Its smaller size allows for agility, but may also limit trading liquidity compared to larger funds.

Volatility

Volatility is tied to the overall market and the performance of the underlying mid-cap stocks. Smaller companies are exposed to higher risk.

Market Risk

Market risk is inherent in equity investments, and IQSM is also exposed to risks specific to the mid-cap segment, such as lower liquidity and greater sensitivity to economic cycles.

Ideal Investor Profile

The ideal investor is someone looking for ESG-focused exposure to the U.S. mid-cap equity market, willing to accept the risks associated with mid-cap investing, and who is aligned with the ETF's ESG screening criteria.

Market Risk

Suitable for long-term investors seeking to align their investments with ESG principles, potentially as a component of a diversified portfolio.

IQSM provides targeted access to U.S. mid-cap equities screened for ESG factors. It is suitable for investors looking for returns from mid-cap equity that prioritizes companies with strong environmental, social, and governance practices. While it benefits from the growing interest in responsible investing, potential investors should consider its relatively small size and lower liquidity compared to more established competitors. The ETF's performance is dependent on the selection criteria and the broader mid-cap market movements.

Data Sources:

• Iq Candriam ESG U.S. Mid Cap Equity ETF Fund Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Market conditions can change rapidly.