Macquarie ETFs Investment Strategies and Performance

Macquarie ETFs offer a range of investment strategies, including active management and passive replication.

Their ETFs track various market indices, such as the S&P/ASX 200 and the MSCI World.

Macquarie's ETFs also provide exposure to specific sectors, like technology and healthcare, through funds like the Macquarie Technology ETF.

These investment options cater to different investor needs and risk profiles, from conservative to growth-oriented.

The Macquarie Focused Emerging Markets Equity ETF has a legal name that's straightforward and easy to understand.

This fund is domiciled in the US, which means it's subject to US regulations and laws.

The currency in which the fund's shares are traded is USD.

Here are the key details of the fund:

The performance of Macquarie ETFs is an important consideration for investors. EMEQ, a particular ETF, has a YTD return of 3.7%.

The fees associated with EMEQ are also noteworthy. The expense ratio is 0.85% of the fund's assets under management (AUM), which is the same as the management fee. There is no 12b-1 fee or administrative fee.

Here's a breakdown of the fees:

It's essential to note that past performance is not a reliable indicator of future performance, and total returns are calculated based on changes in net asset values, assuming the reinvestment of distributions.

Operating fees can add up quickly, and it's essential to understand what you're paying for. The expense ratio, management fee, and administrative fees are all relevant in this context.

The expense ratio for EMEQ Fees is 0.85% of the assets under management (AUM). This is a significant cost that can eat into your returns.

Management fees are also a key consideration, and in this case, EMEQ Fees charges 0.85% of the AUM for this service. This fee is likely to be a major expense for investors.

Administrative fees are not explicitly listed in the provided data, so it's unclear what, if any, administrative fees are charged by EMEQ Fees.

Here's a breakdown of the fees mentioned:

It's worth noting that the 12b-1 fee is not applicable in this case, as it's listed as N/A (not applicable). This may be due to the fund's structure or investment strategy.

Performance can be a tricky topic, especially when it comes to understanding what's actually being measured. Past performance is not a reliable indicator of future performance, so don't get too excited about last year's returns.

Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions. This means that any dividends or interest earned are automatically reinvested to try and boost returns.

The performance information shown may differ to the information in the performance report due to rounding. It's always a good idea to double-check the numbers to get a clear picture.

**Total net returns are quoted after the deduction of all fees and expenses. This is important to note, as individual investor circumstances can affect net returns. Your returns may differ from the quoted net returns above.

Here's a brief summary of EMEQ's performance over different time periods:

Note: * indicates that the data is not available or applicable.

It's worth keeping in mind that EMEQ's performance may be compared to the S&P/ASX 300 Accumulation Index, but this benchmark information is not explicitly stated in the provided article section facts.

Macquarie's investment approach is built on a robust systematic process that has delivered long-term, consistent, index-plus returns across a range of strategies. This process involves sifting through vast amounts of data to identify companies with the best chance of outperformance.

Their quantitative process uses proprietary tools to synthesise data on prices, volumes, earnings, expenses, trends, valuations, ratios, carbon footprints, and even the 'tone' of a company's announcement. This allows them to construct a fine-tuned portfolio that aims to reduce the risks of emotional biases and avoid unrewarded tilts.

Macquarie's fixed income team has seen its fair share of 'black swan' events and has developed a rigorous, thoughtful, and sensible approach to active management. This approach has been tested through many challenging market conditions over the past 20 years, including the GFC, European Sovereign Crisis, and COVID.

The Macquarie Income Opportunities Fund has been well-equipped to navigate stressed market environments, thanks to research that was refreshed multiple times since the late 90s. This fund has an unbroken track record of regular distributions, a testament to its ability to adapt to market risks and opportunities.

Macquarie's Dynamic Bond Fund is designed to balance return and diversification objectives, adapting to market risks and opportunities across the global bond spectrum. This fund sits within a disciplined global framework, drawing on global market expertise.

Here are the key features of Macquarie's Core Australian Equity Active ETF:

The portfolio of Macquarie ETFs is subject to change, and the values shown are based on a third-party pricing vendor's price, which may not reflect the actual price at which the Fund values its holdings.

The portfolio holdings may exclude cash and cash equivalents, and the values are as of the date indicated. The vendor price used to calculate the portfolio's holdings is not necessarily the price at which the Fund values its holdings for net asset value purposes.

The portfolio has a significant weighting of top 10 holdings, with 60.70% of its net assets invested in these positions. This concentration is a notable aspect of the portfolio's composition.

Fund classification is crucial for portfolio management.

Equity funds are categorized into large-cap, mid-cap, and small-cap funds based on the market capitalization of the companies they invest in.

Large-cap funds invest in companies with a market capitalization of over $10 billion, which tend to be more stable but offer lower growth potential.

Mid-cap funds invest in companies with a market capitalization between $2 billion and $10 billion, offering a balance between stability and growth.

Small-cap funds invest in companies with a market capitalization below $2 billion, which can be riskier but offer higher growth potential.

Debt funds are categorized into short-term and long-term funds based on their investment horizon.

Short-term debt funds invest in securities with a maturity period of up to one year, providing liquidity and lower returns.

Long-term debt funds invest in securities with a maturity period of over one year, providing higher returns but with higher interest rate risk.

Your portfolio is a collection of investments that can change over time. It's essential to keep an eye on what you own, as the values can fluctuate.

The holdings in your portfolio are subject to change and may not include cash and cash equivalents. As of the date indicated, the list of holdings might be different than what you see today.

The percentage of each holding in your portfolio is calculated based on a third-party price, which might not reflect the actual value of the investment. This is because the vendor price is used for calculation purposes, whereas the valuation price is used to determine the net asset value.

The vendor price is updated regularly, but it might not be as current as the valuation price. For example, the vendor price is updated as of 4:00pm GMT, whereas the valuation price is updated at the close of business on the New York Stock Exchange.

Here's a breakdown of the holdings in your portfolio:

All investments carry risk, and the higher the potential return, the greater the risk.

The Macquarie ETFs are no exception, with investment risk being a significant concern. The Fund has exposure to share markets, which can be volatile and have the potential to fall by large amounts over short periods of time.

The risks of investing in the Fund include market risk, security specific risk, and manager risk. Share markets can be unpredictable, and poor performance or losses in domestic and/or global share markets are likely to negatively impact the Fund's overall performance.

More information on the risks of investing in the Fund can be found in the Product Disclosure Statement, which is essential reading before deciding to invest.

All investments carry risk, and the level of risk varies depending on the investment strategy and underlying investments. Generally, the higher the potential return, the greater the risk.

Investment risk is a significant concern, as the Fund has exposure to share markets, making it riskier than a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate by material amounts over short periods.

Market risk is also a factor, as the Fund's investments are likely to have a broad correlation with share markets in general. Share markets can be volatile and have the potential to fall by large amounts over short periods of time.

Security specific risk is another consideration, as individual securities and companies are exposed to various factors that can affect their performance. This can cause an investment's return to differ from that of the broader market.

There is no guarantee that the Fund will meet its performance objectives or produce positive returns. The Investment Manager's strategies or models may not produce favourable outcomes.

Regulatory documents are crucial for investors to understand the risks and responsibilities associated with a particular investment product.

Product Disclosure Statements (PDS) provide detailed information about an investment product, its features, and risks.

The PDS Update for the Macquarie Core Australian Equity Active ETF, for example, includes information about changes in operating hours for Macquarie Asset Management Client Serve, effective from 2 January 2025.

A Target Market Determination (TMD) is also an important regulatory document that outlines the target market for an investment product.

Regulatory documents like PDS and TMD are designed to ensure transparency and fairness in the investment process.

When reviewing the documents associated with your investments, it's essential to understand what reports are available to you. The Performance report for the Macquarie Core Australian Equity Active ETF is a vital document that provides insights into the fund's performance.

This report typically includes information on the fund's returns, benchmark performance, and other key statistics. You can use this information to make informed decisions about your investments.

The Performance report is usually presented in a clear and concise manner, making it easy to understand even for those without extensive financial knowledge.