(IDME) International Drawdown - Ratings and Ratios

The International Drawdown Managed Equity ETF (IDME) is an actively managed fund that employs a hybrid strategy, allocating its assets between a portfolio of international equity ETFs and equity-linked notes (ELNs) to generate income. The equity component invests in developed and emerging markets globally, providing broad international exposure.

From a portfolio management perspective, the funds non-diversified nature implies a higher concentration risk, which may result in higher volatility. To mitigate this, the funds management team must be adept at navigating complex international markets and making informed decisions about asset allocation. Key performance indicators (KPIs) to monitor include the funds tracking error relative to its benchmark, the income generated from the ELN strategy, and the overall expense ratio.

In terms of risk management, the use of ELNs can help reduce the funds overall volatility by generating income and potentially offsetting losses in the equity portfolio. However, this strategy also introduces counterparty risk, which must be carefully managed. To evaluate the funds effectiveness, investors can monitor KPIs such as the Sharpe ratio, Sortino ratio, and the funds maximum drawdown.

With an AUM of $321.97M, IDME has achieved a reasonable scale, which can help reduce costs and improve liquidity. To further assess the funds performance, investors can analyze its returns relative to its peers and benchmark, as well as its risk-adjusted returns. Other relevant KPIs include the funds beta, standard deviation, and the percentage of assets allocated to ELNs versus the equity portfolio.