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We have recently received three new ETFs built on the concept of R&D. These ETFs offer exposure to innovative companies with a history of reinvesting into research and development (R&D), exhibiting strong growth potential. Below we highlight these three new ETFs in detail.
IQ U.S. Large Cap R&D Leaders ETF (LRND) seeks investment results that track, before fees and expenses, the price and yield performance of the IQ U.S. Large Cap R&D Leaders Index, an index that seeks to provide exposure to innovative companies by investing in U.S. large-cap equity securities of companies that have high research and development (R&D) spending.
The 100-stock ETF charges 14 bps in fees. No stock accounts for more than 7.8% of the portfolio. Amazon (7.8%), Alphabet (7.3%) and Apple (5.7%) are top three holdings of the fund.
IQ U.S. Mid Cap R&D Leaders ETF
IQ U.S. Mid Cap R&D Leaders ETF seeks investment results that track, before fees and expenses, the price and yield performance of the IQ U.S. Mid Cap R&D Leaders Index, an index that seeks to provide exposure to innovative companies by investing in U.S. mid-cap equity securities of companies that have high research and development (R&D) spending.
The 100-stock ETF charges 16 bps in fees. No stock accounts for more than 4.5% of the portfolio. Biogen (4.5%), Electronics Arts (3.6%) and Dell (2.9%) are top three holdings of the fund. Information Technology (35.3%) and Healthcare (25.7%) are top two sectors of the fund.
IQ Global Equity R&D Leaders ETF (WRND - Free Report) seeks investment results that track, before fees and expenses, the price and yield performance of the IQ Global Equity R&D Leaders Index, an index that seeks to provide exposure to innovative companies by investing in the equity securities of global companies that that have high research and development (R&D) spending.
The 201-stock ETF charges 18 bps in fees. No stock accounts for more than 5.9% of the portfolio. Amazon (5.9%), Alphabet (4.6%) and Meta Platforms (3.5%) are top three holdings of the fund. Information Technology (31.5%), Healthcare (24.8%) and Consumer Discretionary (21.1%) are top two sectors of the fund. United States (56.7%), Japan (9.5%) and Germany (8.3%) are the top three countries of the fund.
How Do They Fit In a Portfolio?
R&D is important for businesses because it offers powerful know-how and improvements to existing processes where efficiency can be increased and costs can be reduced. It also enables businesses to develop new products and services so that those businesses can flourish in competitive markets.
Companies with significant reinvestment into R&D can help investors seek favorable relative performance and attractive future growth potential, per the issuer.
Competition
This is kind of concept is pretty new in the market. We do not expect the funds to face much competition due to its unique investment objective.
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Bet on R&D With These New ETFs
We have recently received three new ETFs built on the concept of R&D. These ETFs offer exposure to innovative companies with a history of reinvesting into research and development (R&D), exhibiting strong growth potential. Below we highlight these three new ETFs in detail.
IQ U.S. Large Cap R&D Leaders ETF LRND
IQ U.S. Large Cap R&D Leaders ETF (LRND) seeks investment results that track, before fees and expenses, the price and yield performance of the IQ U.S. Large Cap R&D Leaders Index, an index that seeks to provide exposure to innovative companies by investing in U.S. large-cap equity securities of companies that have high research and development (R&D) spending.
The 100-stock ETF charges 14 bps in fees. No stock accounts for more than 7.8% of the portfolio. Amazon (7.8%), Alphabet (7.3%) and Apple (5.7%) are top three holdings of the fund.
IQ U.S. Mid Cap R&D Leaders ETF
IQ U.S. Mid Cap R&D Leaders ETF seeks investment results that track, before fees and expenses, the price and yield performance of the IQ U.S. Mid Cap R&D Leaders Index, an index that seeks to provide exposure to innovative companies by investing in U.S. mid-cap equity securities of companies that have high research and development (R&D) spending.
The 100-stock ETF charges 16 bps in fees. No stock accounts for more than 4.5% of the portfolio. Biogen (4.5%), Electronics Arts (3.6%) and Dell (2.9%) are top three holdings of the fund. Information Technology (35.3%) and Healthcare (25.7%) are top two sectors of the fund.
IQ Global Equity R&D Leaders ETF (WRND - Free Report)
IQ Global Equity R&D Leaders ETF (WRND - Free Report) seeks investment results that track, before fees and expenses, the price and yield performance of the IQ Global Equity R&D Leaders Index, an index that seeks to provide exposure to innovative companies by investing in the equity securities of global companies that that have high research and development (R&D) spending.
The 201-stock ETF charges 18 bps in fees. No stock accounts for more than 5.9% of the portfolio. Amazon (5.9%), Alphabet (4.6%) and Meta Platforms (3.5%) are top three holdings of the fund. Information Technology (31.5%), Healthcare (24.8%) and Consumer Discretionary (21.1%) are top two sectors of the fund. United States (56.7%), Japan (9.5%) and Germany (8.3%) are the top three countries of the fund.
How Do They Fit In a Portfolio?
R&D is important for businesses because it offers powerful know-how and improvements to existing processes where efficiency can be increased and costs can be reduced. It also enables businesses to develop new products and services so that those businesses can flourish in competitive markets.
Companies with significant reinvestment into R&D can help investors seek favorable relative performance and attractive future growth potential, per the issuer.
Competition
This is kind of concept is pretty new in the market. We do not expect the funds to face much competition due to its unique investment objective.