90+
69%
320+
The case for emerging markets
Harnessing the high yield municipal bond advantage
This often overlooked part of the fixed income market can provide investors with attractive levels of tax-advantaged income.
Being intentional in equity markets
The lack of breadth in equity markets is concerning. Our team discusses how an intentional, quality-first investment approach can help.
How much is too much?
Diversification has become a bedrock of managing portfolios, a seemingly foolproof strategy. However, actual results may surprise investors.
There are several, but you’ll probably hear most often about the following:
Tax efficiency: The ETF vehicle has a natural mechanism that can enhance the tax efficiency of a portfolio. Securities can be redeemed in-kind (i.e. securities are traded for other securities), which allows portfolio managers to remove securities with gains from the portfolio. This does not remove the gains from the portfolio, but instead isolates the gains to investors when they buy and sell at market price.
Liquidity: ETFs can be traded throughout the day when the exchange is open, while mutual funds can be bought or sold only at the end of the day once net asset value (NAV) has been determined.
Lower costs: Generally, the fees associated with ETFs are lower than the fees for mutual funds because ETFs typically have no distribution (e.g. 12b-1) fees and have lower operating fees.
Transparency: Although not all ETFs are transparent, Macquarie ETFs in the US are, and they provide investors with daily disclosure of portfolio holdings.
No transaction fee: Many ETFs can be accessed through platforms with no commission fees.
Active ETFs are actively managed by an investment manager – typically with the aim of outperforming a market benchmark or achieving a specific investment objective. Active ETFs give investors access to experienced investment management specialists, allowing investors to build portfolios and invest in ways that may be suitable for their individual investment objectives and risk tolerances.
Active ETFs, like all ETFs, are open-end funds, which means that the ETF issuer can create or redeem shares according to investor demand, and investors are generally able to buy and sell these shares on the exchange during each trading day.
A passive ETF, also known as an index ETF, typically aims to replicate the performance of a specific index. It may be designed to track a standard index, such as the S&P 500® Index or a custom benchmark tailored to a specific investment theme. The value of a passive ETF typically goes up or down in line with the index it tracks, and, in general, the ETF does not aim to outperform that index.
An active ETF, in contrast, is based on a particular active investment strategy and its underlying investments are chosen by the investment manager in accordance with the strategy. The investment strategy may seek to outperform an index or market sector, or to achieve a certain investment return or risk objective. The investment manager may employ various trading and portfolio management strategies to try to meet the ETF’s investment objective.
The price of an ETF is influenced by market forces. If the market is volatile, the ETF price may fluctuate accordingly. Markets tend to be more volatile near their open and close, and this is when spreads generally widen. Prices at the beginning of a trading day are influenced by breaking and overnight news and then tend to normalize.
Based on these trends, the general view is to avoid buying or selling ETFs within the first 30 minutes of the trading day or during the closing auction at the end of the trading day. In early trading there may be a lower volume of trading activity, in conjunction with economic data news and changes in market sentiment, which can lead to higher market volatility and result in the ETF price not aligning closely with its NAV. The same may be said about trading in the closing auction, when there is a heightened risk of trading an ETF at a price that is at a greater discount or premium to the underlying value of its assets than at other times of the day.
ETFs will typically charge a management fee, and the fees charged by the ETF will be set out in the ETF’s prospectus.
The fees charged by an ETF are set by the ETF issuer and will be different for each ETF, depending on the strategy. The fees are commonly calculated daily and deducted from the assets of the ETF by the issuer and reflected in the NAV per unit share price of the ETF.
Macquarie Asset Management Sales Desk
Telephone
Advisors: 877 693-3546
Investors: 844 469-9911
1 Macquarie Asset Management mutual funds in the US trace their roots to Delaware Investments, which was founded in 1929. The performance quoted represents past performance and does not guarantee future results. The Delaware Funds by Macquarie are distributed by Delaware Distributors, L.P., a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA) and an affiliate of Macquarie Investment Management Business Trust (MIMBT), a Securities and Exchange Commission (SEC) registered investment adviser.
2 Based on 3-year performance results as of June 30, 2024.
3 Figures as of March 31, 2024.
4 Concentrated references the target of 35-60 holdings in the portfolio.
5 Pure infrastructure: Greater than 80% of enterprise value attributable to regulated utilities, energy infrastructure (energy transport/storage companies), user demand/transportation (airports, tolls roads, seaports, railways), and communication (cell-tower companies). Includes equity & multi-asset and credit businesses.
Investing in any exchange-traded fund involves the risk that you may lose part or all of the money you invest.
Diversification may not protect against market risk.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.
Investment strategies that hold securities issued by companies principally engaged in the infrastructure industry have greater exposure to the potential adverse economic, regulatory, political, and other changes affecting such entities.
Infrastructure companies are subject risks including increased costs associated with capital construction programs and environmental regulations, surplus capacity, increased competition, availability of fuel at reasonable prices, energy conservation policies, difficulty in raising capital, and increased susceptibility to terrorist acts or political actions.
Carefully consider the Fund's investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund's prospectus or the summary prospectus, which may be obtained by visiting the Macquarie ETF Trust resource pages or calling 844 469-9911. Read the prospectus carefully before investing.
The Macquarie ETF Trust Funds are distributed by Foreside Financial Services, LLC. Foreside Financial Services, LLC is not affiliated with any Macquarie entity, including Macquarie Asset Management and Delaware Distributors, L.P.
All third-party marks cited are the property of their respective owners.
Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.
Not FDIC Insured • No Bank Guarantee • May Lose Value
You can check the background of your investment professional on FINRA's BrokerCheck.
[4155478-02/25 | MET-667238]