IndexIQ Ten Year Return vs. Five Year Return
Considering IndexIQ's profitability and operating efficiency indicators, IndexIQ may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess IndexIQ's ability to earn profits and add value for shareholders.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in population.
For IndexIQ profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IndexIQ to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well IndexIQ utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IndexIQ's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of IndexIQ over time as well as its relative position and ranking within its peers.
IndexIQ |
The market value of IndexIQ is measured differently than its book value, which is the value of IndexIQ that is recorded on the company's balance sheet. Investors also form their own opinion of IndexIQ's value that differs from its market value or its book value, called intrinsic value, which is IndexIQ's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because IndexIQ's market value can be influenced by many factors that don't directly affect IndexIQ's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between IndexIQ's value and its price as these two are different measures arrived at by different means. Investors typically determine if IndexIQ is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IndexIQ's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
IndexIQ Five Year Return vs. Ten Year Return Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining IndexIQ's current stock value. Our valuation model uses many indicators to compare IndexIQ value to that of its competitors to determine the firm's financial worth. IndexIQ is rated below average in ten year return as compared to similar ETFs. It is rated below average in five year return as compared to similar ETFs reporting about 0.29 of Five Year Return per Ten Year Return. The ratio of Ten Year Return to Five Year Return for IndexIQ is roughly 3.43 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the IndexIQ's earnings, one of the primary drivers of an investment's value.IndexIQ Five Year Return vs. Ten Year Return
Ten Year Return shows the total annualized return generated from holding a fund for the last 10 years and represents fund's capital appreciation, including dividends losses and capital gains distributions. This return indicator is considered by many investors to be the ultimate measures of fund performance and can reflect the overall performance of the market or market segment it invests in.
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| = | 0.72 % |
Although Ten Year Fund Return indicator can give a sense of overall fund long-term potential, it is recommended to compare funds performances against other similar funds or market benchmarks for the same 10-year interval.
Five Year Return is considered one of the best measures to evaluate fund performance, especially from the mid and long term perspective. It shows the total annualized return generated from holding equity for the last five years and represents capital appreciation of the investment, including all dividends, losses, and capital gains distributions.
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| = | 0.21 % |
Although Five Year Returns can give a sense of overall investment potential, it is recommended to compare equity performance with similar assets for the same five year time interval. Similarly, comparing overall investment performance over the last five years with the appropriate market index is a great way to determine how this equity instrument will perform during unforeseen market fluctuations.
IndexIQ Five Year Return Comparison
IndexIQ is currently under evaluation in five year return as compared to similar ETFs.
IndexIQ Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in IndexIQ, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IndexIQ will eventually generate negative long term returns. The profitability progress is the general direction of IndexIQ's change in net profit over the period of time. It can combine multiple indicators of IndexIQ, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The fund is a fund of funds which means it invests, under normal circumstances, at least 80 percent of its net assets, plus the amount of any borrowings for investment purposes, in the investments included in its underlying index, which includes underlying funds. IQ Hedge is traded on NYSEARCA Exchange in the United States.
IndexIQ Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on IndexIQ. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of IndexIQ position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the IndexIQ's important profitability drivers and their relationship over time.
Use IndexIQ in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if IndexIQ position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IndexIQ will appreciate offsetting losses from the drop in the long position's value.IndexIQ Pair Trading
IndexIQ Pair Trading Analysis
The ability to find closely correlated positions to IndexIQ could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IndexIQ when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back IndexIQ - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling IndexIQ to buy it.
The correlation of IndexIQ is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as IndexIQ moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if IndexIQ moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for IndexIQ can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your IndexIQ position
In addition to having IndexIQ in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Business Services Thematic Idea Now
Business Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Services Theme or any other thematic opportunities.
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project IndexIQ's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of IndexIQ at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include IndexIQ's income statement, its balance sheet, and the statement of cash flows.