IQ Winslow Focused Large Cap Growth ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The strategy receives an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in volatility exposure and an overweight in quality exposure compared with category peers. Low volatility exposure is attributed to stocks with a lower standard deviation of returns. And a high quality exposure is rooted in holding stocks that are consistently profitable, growing, and have solid balance sheets. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Microsoft

Amazon

NVIDIA

Alphabet

Broadcom

Apple

UnitedHealth Group

Intuitive Surgical

Analog Devices

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 Winslow Focused Large Cap Growth ETF earns an Average Process Pillar rating. 

The leading factor in the rating is the firm's five-year retention rate of 87% over the period. The size of the portfolio management team also reinforces the process. With three portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by its parent firm's subpar 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.

 This strategy skews toward smaller, higher-growth companies compared with its average peer in the Large Growth Morningstar Category. Examining additional factor exposure, this strategy has continually underweighted stocks that have a lower standard deviation of returns compared with Morningstar Category peers over the past few years. These low-risk stocks are typically at their best when markets are not. Low volatility exposure contributes to limited loss on the downside at the cost of a lag in bull markets. In the latest month, the strategy was also less exposed to the Volatility factor compared with Morningstar Category peers. This strategy also has had a defensive tilt, with exposure to higher-quality stocks compared with peers in recent years. This means that the fund holds companies that are profitable, growing, and have solid balance sheets. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. Additionally, this strategy has demonstrated a preference for high-momentum stocks in these years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. In this month, the strategy also had more exposure to the Momentum factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology and basic materials relative to the category average by 3.5 and 2.7 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and consumer cyclical, underweight the average by 2.9 and 2.7 percentage points of assets, respectively. The portfolio is composed of 26 holdings and invests 55.5% of assets in its top 10 holdings, similar to the category average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 29% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

IQ Winslow Focused Large Cap Growth ETF earns an Average People Pillar rating. The team is backed by Justin H. Kelly, the longest-tenured manager on the strategy, who provides over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.8 stars, demonstrating encouraging risk-adjusted performance. Although the team is small, it is a solid supporting cast. Together, the three listed managers boast more than an average of 13 years of listed portfolio management experience. As a team, they manage two investment vehicles together, with a Neutral asset-weighted average Morningstar Medalist Rating, indicating the team will struggle to deliver positive alpha in aggregate. None of the managers here invest any money in the strategy, which is disappointing, as such investments help align managers' interests with fundholders.

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

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 Winslow Focused Large Cap Growth ETF

IWFG is an actively managed, non-transparent fund that seeks long-term capital appreciation by targeting US large-cap growth companies. It limits the number of its holdings, selecting only the top growth stocks using a bottom-up investment approach. The fund utilizes the Natixis/NYSE non-transparent model.

IQ Winslow Large Cap Growth ETF

IndexIQ today announced the launch of its first active semi-transparent exchange traded funds: the IQ Winslow Large Cap Growth ETF (NYSE Arca: IWLG) and the IQ Winslow Focused Large Cap Growth ETF (NYSE Arca: IWFG). The new ETFs are managed by Winslow Capital Management LLC.

IndexIQ Intros 2 Semi-Transparent Active U.S. Growth Equity ETFs

NEW YORK--(BUSINESS WIRE)--IndexIQ and Winslow Capital Management today announce the launch of the semi-transparent actively managed ETFs IWLG and IWFG.

News for IQ Winslow Focused Large Cap Growth ETF ETF (IWFG)