IQ Candriam U.S. Large Cap Equity ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Microsoft

Apple

Amazon

Alphabet

Eli Lilly

Exxon Mobil

UnitedHealth Group

Visa

Tesla

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. IQ Candriam U.S. Large Cap Equity ETF earns an Above Average Process Pillar rating. The most significant contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 87% also contributes to the process. Lastly, the process is limited by its parent firm's inferior risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.8 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results that track (before fees and expenses) the price and yield performance of its underlying index, the IQ Candriam U.S. Large Cap Equity Index.  The Advisor employs a "passive management" - or indexing - investment approach designed to track the performance of the underlying index. The underlying index is designed to deliver exposure to equity securities of companies meeting environmental, and social and corporate governance (ESG) criteria developed by Candriam and weighted using a market capitalization weighting methodology. -null-. 

 The portfolio is overweight in technology and consumer cyclical relative to the category average by 7.4 and 3.4 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and healthcare, underweight the average by 4.7 and 3.2 percentage points of assets, respectively. The portfolio is positioned across 314 holdings and is less top-heavy than peers. Specifically, 38.6% of the strategy's assets are concentrated within the top 10 fund holdings, as opposed to the category’s 48.8% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 19% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

New York Life’s team receives An Average People Pillar rating. The most meaningful contributor to the rating is the firm's five-year retention rate of 87%. A low cost, with fees that rank in its category's cheapest fifth, also strengthens the rating. Fees reduce net returns, so the managers have a lower expense hurdle to overcome. Lastly, the rating is limited by the parent firm's five-year success ratio of 44%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

Average

People

New York Life Investments' collection of autonomous investment boutiques will have a new leader in May 2023, and it will take time to assess his impact. The firm keeps its Average Parent rating.
New York Life, the insurance giant that owns NYL Investments, tapped Naïm Abou-Jaoudé to be the asset manager's CEO after the previous CEO departed. Abou-Jaoudé inherits a firm that has grown by building internally and through acquisition. The firm offers mandates in partnership with 13 different asset managers--eight of which are wholly or partially owned affiliates – through several global outlets. Most U.S. funds fall under the established MainStay brand, whereas IndexIQ oversees a growing lineup of ETFs managed both internally and by other affiliates. Candriam, at which Abou-Jaoudé has been CEO even prior to its 2014 acquisition by NYL Investments, takes the lead in Europe through its own offerings and through those subadvised by other boutiques.
Plenty of these capabilities are compelling, with Candriam and fellow affiliates MacKay Shields and Ausbil sporting standout teams in several wheelhouses. Yet many of the boutiques have also struggled with managing bloated lineups or with improving lagging teams. NYL Investments hasn't shied from changing subadvisors or merging platforms and doesn't have a spotless record of managing capacity or of avoiding trendy offerings.

Parent

IQ Candriam ESG US Equity ETF

IQSU tracks a proprietary index of large-cap US stocks selected by ESG criteria and weighted by market capitalization.

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IQ Candriam ESG International Equity ETF

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On this episode of ETF Prime, VettaFi's Stacey Morris offered a quarterly update on the energy sector and energy ETFs with host Nate Geraci. Candriam's Alexandra Russo later joined Geraci to discuss ESG investing mishaps and opportunities.

ETF Prime: Morris Provides Quarterly Energy Sector Update

There's no sugarcoating it. Last year was unkind to many traditional environmental, social, and governance (ESG) exchange traded funds.

ESG Can Rebound From 2022 Declines

Last year was an interesting one regarding how market participants view environmental, social, and governance (ESG). Those that oppose that style seemingly grew more strident in that opposition while ESG supporters displayed continuing devotion.

This ESG ETF Could Be Prime Rebound Candidate

Advisors and experienced investors know that when it comes to index funds and passively managed exchange traded funds, understanding the underlying index's methodology is a critical element in charting outcomes. That's particularly true in the world of environmental, social, and governance (ESG) investing where indexes and funds are sprouting up at a rapid pace.

With This ESG ETF, the Index Really Matters

Large- and mega-cap growth equities wilted last year against the backdrop of seven interest rate hikes by the Federal Reserve — actions that created downside for a variety of environmental, social, and governance (ESG) exchange traded funds.

Abundant Quality Found in ESG ETF IQSU

IQ Candriam ESG US Mid Cap Equity ETF

Good news for the fund industry: Investors are willing to incur higher expense ratios when it comes to accessing environmental, social, and governance (ESG) products. Good news for investors: They don't have to do that.

Investors Are Willing to Pay Up for ESG ETFs, but They Don't Have To

This year's weakness in growth stocks is an obvious burden for environmental, social, and governance (ESG) exchange traded funds, including the IQ Candriam ESG US Large Cap Equity ETF (IQSU), but some market observers believe growth can rebound in 2023. The $366.8 million IQSU is predictably growth-heavy, allocating 50.

Contrarian Calls Could Boost This ETF in 2023

Experienced environmental, social, and governance (ESG) investors know that many of the exchange traded funds in this category are heavily allocated (though not entirely dedicated) to growth stocks.

Position for Growth Stock Rebound With IQSU

iQIYI

There are some inevitabilities regarding environmental, social, and governance (ESG) investing, including that debate will continue being directed at this style and that growth is likely to do the same.

With ESG Future Looking Bright, Consider IQSU

Environmental, social, and governance (ESG) and sustainability are two distinct investing styles, but in the fund universe, including exchange traded funds, the two themes often converse under the umbrella of a single fund. Take the example of the IQ Candriam ESG US Large Cap Equity ETF (IQSU).

Investigate IQSU for Strong Sustainable Equity Exposure

As has been widely noted, there are various interpretations regarding environmental, social, and governance (ESG) ratings, meaning there can be elements of opinion in what constitutes a “good ESG stock,” such as IQSU.

IQSU Holds Lots of the Best ESG Stocks

It's widely known that many environmental, social, and governance ETFs, or ESG ETFs, feature substantial allocations to growth stocks — the bulk of which are often sourced through overweight positions in the technology sector.

Big Tech Stocks Could Support This ESG ETF

Many environmental, social, and governance (ESG) exchange traded funds are heavily allocated to growth stocks. As such, those funds typically feature allocations to the technology sector that are well in excess of what's found in broader market benchmarks.

Tech Companies Face ESG Risk, Opportunity

At a time when oil prices are high and as energy ranks as one of the lone bright spots in the U.S. equity market on a year-to-date basis, it's easy for investors to get frustrated about strategies that lack exposure to that sector.

This ESG ETF Can Rebound — Here's Why

With environmental, social and governance (ESG) exchange traded funds increasingly popular ideas among advisors and retail investors alike, there's also increasing scrutiny on how products in this category deliver the purported ESG goods. That scrutiny is warranted because the various index issuers providing benchmarks to ETF sponsors approach ESG in differing fashions.

When Experience, Methodology Matter, Consider These ESG ETFs

Environmental, social, and governance (ESG) investing often is, on a superficial level, tied to growth, but it's also ripe with value attributes. That pertains to value in both the traditional sense — discounted stocks — and the perspective of value propositions.

Assessing ESG Value Add Attributes

Environmental, social, and governance (ESG) investing and the related exchange traded funds are enduring plenty of criticism — some of it pent-up — but that doesn't mean this style of investing is doomed.

1 Rough Year Doesn't Doom ESG's Fate

As environmental, social, and governance (ESG) gains credibility as an investing style and as more market participants allocate capital to the related exchange traded funds, there's increasing scrutiny around the ESG space. With that scrutiny comes a need for clarity and more straightforward approaches to the benefits of ESG investing.

Gain ESG Clarity With IQSU

Broad-based domestic equity environmental, social, and governance (ESG) exchange traded funds are often heavy on growth stocks.

This ESG ETF Holds Some Quality, Undervalued Growth Stocks

There's no shortage of critics of the environmental, social, and governance (ESG) movement, investing style, and the related exchange traded funds. That's not debatable.

ESG Critics Are Often Vocal, Not Always Successful

In theory, there shouldn't be much debate about Tesla's (NASDAQ:TSLA) standing as an environmental, social, and governance (ESG) stock. After all, the company is the largest electric vehicle maker.

Is Tesla an ESG Stock?

It might seem like a difficult task, but in a rapidly expanding landscape of environmental, social, and governance (ESG) exchange traded funds, it is possible for investors to identify products that stand out out from the pack and are easy to understand. Not all ESG ETFs check both boxes, but the IQ Candriam ESG US [.

IQSU: Basic but Different Approach to ESG

As the landscape of environmental, social and governance (ESG) funds grows and evolves, it's clear that investors are embracing ESG, but they're demanding more education and clarity. One thing that's becoming abundantly clear is that they want to avoid greenwashing.

Avoid Greenwashing Controversy With IQSU

Investors love the exchange traded fund structure, and they also love low fees on their ETFs. Many of those market participants are also embracing environmental, social, and governance (ESG) strategies.

Investigate IQUS for Cost-Efficient ESG Exposure

Investors can look to achieve “sustainable alpha” or socially responsible portfolio outperformance through the use of impact exchange traded fund investment strategies aligned to the UN's Sustainable Development Goals. In the recent webcast, Sustainable Alpha: How Thematic Investing Seeks to Deliver Dual Impact, Wendy Wong, head of sustainable investment partnership at New York Life Investments, [.

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