IQ 50 PERCENT HEDGED FTSE EUROPE
ALTAR
Score™
6.7% info Recommen-
dation
UNDERWEIGHT
2019E    2020E
P/E
ratio
15.3x P/Sales
ratio
1.2x
P/BV
ratio
1.7x Div.
yield
3.6%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The IQ 50 Percent Hedged FTSE Europe ETF tracks a vanilla index of large- and midcap companies domiciled in developed European nations, with approximately half of its foreign currency exposure hedged into the U.S. dollar.

FUND BASICS
Category International Equities
Fund Sponsor IndexIQ
Website www.indexiq.com
Inception date Jul 22, 2015
Assets (mns) $9
Currency USD
Expense ratio 30 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-End Investment Company
Custodian
Weighting Market Cap
Index replication
Uses derivatives No
Options available No

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 580
Wgt avg mkt cap (mns) $76,931
Large cap (>$10bn) 86.5%
Mid cap ($2-10bn) 12.7%
Small cap (<$2bn) 0.5%
Developed mkts 99.4%
Emerging mkts 0.6%

TOP TEN HOLDINGS
NESTLE SA-REG 3.2 %
ROCHE HOLDING AG-GENUSSCHEIN 2.3 %
NOVARTIS AG-REG 2.1 %
HSBC HOLDINGS PLC 1.6 %
SAP AG 1.4 %
TOTAL SA 1.4 %
BP PLC 1.4 %
ROYAL DUTCH SHELL PLC-A SHS 1.3 %
ASTRAZENECA PLC 1.3 %
ROYAL DUTCH SHELL PLC-B SHS 1.2 %
Total 17.2 %

TOP COUNTRY EXPOSURE
BRITAIN 25.3 %
FRANCE 15.8 %
SWITZERLAND 14.9 %
GERMANY 13.8 %
NETHERLANDS 6.5 %
SPAIN 4.3 %
SWEDEN 4.3 %
ITALY 3.7 %
DENMARK 2.9 %
BELGIUM 1.6 %

HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru November 30)
Year-to-date 1 year 5 years 10 years Since Incep.
22.2% 15.8% -- -- 4.8%

Market Correlations
versus... Beta R-squared
S&P500 0.73 64%
MSCI EAFE 0.95 90%
MSCI Emg. Mkts. 0.60 57%

Technical Indicators
Recent close $20.25
30d moving avg. $20.30
Annualized volatility 11.0%
Short interest (ETF) 0.0%
Relative strength (RSI) 58

Liquidity measures
Avg. volume (thou.) 1
Turnover 0.2%
Bid/Ask (% of price) 0.25%
ADV underlying (mns) $28,225

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the IQ 50 PERCENT HEDGED FTSE EUROPE ETF based on the alternatives' overlap in portfolio holdings with HFXE. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: HFXE Expense: 30 bp ALTAR Score™: 6.7%


ALTERNATIVE ETFs BASED ON OVERLAP WITH HFXE
Ticker Fund
Name
Overlap1
vs HFXE
(%)
Expense
ratio
(bp)
Savings
vs HFXE
(bp)
ALTAR
Score™
(%)
ALTAR
vs HFXE
(%)
FLEE Franklin FTSE Europe 97.0 9 21 6.8 +0.2
FLEH Franklin FTSE Europe Hedged 95.9 9 21 7.0 +0.3
DBEU Xtrackers Europe Hedged 92.5 45 -15 6.5 -0.2
BBEU JPMorgan BetaBuilders Europe 92.2 9 21 6.8 +0.2
IEV iShares S&P Europe 350 89.7 59 -29 6.4 -0.3
IEUR iShares Core MSCI Europe 88.1 9 21 6.8 +0.1
VGK Vanguard FTSE Europe 87.7 9 21 6.9 +0.2
FEU SPDR DJ Stoxx 50 86.1 9 21 6.8 +0.1
GSEU Goldman Sachs ActiveBeta Europe Equity 71.2 25 5 6.3 -0.4
EFA iShares MSCI EAFE 60.6 31 -1 6.9 +0.2
DBEF Xtrackers MSCI EAFE Hedged 59.2 35 -5 6.9 +0.2
EFAX SPDR MSCI EAFE Fossil Fuel Free 58.9 20 10 7.0 +0.3
HFXI IQ 50 Percent Hedged FTSE Int'l 57.6 20 10 7.3 +0.6
PBDM Invesco PureBeta FTSE Developed ex-North America 57.1 7 23 7.5 +0.8
DOL WisdomTree Int'l Large Cap Dividend 55.1 48 -18 7.7 +1.0
ESGD iShares MSCI EAFE ESG Optimized 54.9 20 10 6.8 +0.2
IEFA iShares Core MSCI EAFE 53.9 7 23 7.0 +0.3
DDWM WisdomTree Dynamic Currency Hedged Int'l Equity 53.3 35 -5 7.9 +1.2
PXF Invesco FTSE-RAFI Developed ex-US 52.9 45 -15 8.1 +1.5
DWM WisdomTree DEFA Fund 52.9 48 -18 7.6 +1.0

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
IQ 50 PERCENT HEDGED FTSE EUROPE
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 11.1 %
Divided by: Fwd. P/BV 1.6 x
Less: Expense ratio 30 bp
Equals: ALTAR Score 6.7 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.64 CATEGORY
AVERAGE
1.63
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.