Alpha Blue Capital US Small-Mid Cap Dynamic ETF (ABCS)ABCS

ETF Alpha Blue Capital US Small-Mid Cap Dynamic ETF Overview:

Profile:

Focus: ETF Alpha Blue Capital US Small-Mid Cap Dynamic ETF (BSCM) seeks to achieve long-term capital appreciation by dynamically allocating investments across US small-cap and mid-cap equities.

Asset Allocation: BSCM invests primarily in common stocks of small- and mid-cap companies. The ETF uses a quantitative model to identify potential investments and actively manages its portfolio to adjust to market conditions.

Investment Strategy: BSCM employs a multi-factor approach, considering factors like valuation, momentum, and quality, to select individual stocks. The ETF rebalances its portfolio regularly to maintain its target exposure and manage risk.

Objective:

The primary objective of BSCM is to generate long-term capital appreciation for investors through active management of a diversified portfolio of US small- and mid-cap stocks.

Issuer:

Company: Alpha Blue Capital Management, LLC

Reputation & Reliability: Alpha Blue Capital is a relatively new asset management firm founded in 2022. The firm has a limited track record compared to more established competitors.

Management: The fund is managed by a team of experienced investment professionals with expertise in quantitative analysis and portfolio management.

Market Share:

BSCM is a relatively new ETF launched in June 2023. Therefore, its market share is still small within the US small- and mid-cap ETF space.

Total Net Assets:

As of November 14, 2023, BSCM has total net assets of approximately $50 million.

Moat:

• Quantitative Model: BSCM's actively managed approach utilizes a proprietary quantitative model to identify potential investments, potentially offering an edge over index-tracking funds.
• Dynamic Allocation: The ETF's ability to adjust its portfolio across different market conditions could potentially benefit from increased diversification and risk management.

Financial Performance:

Since its inception in June 2023, BSCM has generated a total return of approximately 12%. However, this data is limited and not comparable to longer-established funds.

Benchmark Comparison:

BSCM outperformed the Russell 2500 Index and the S&P 500 Index during its short history. However, this is not indicative of future performance.

Growth Trajectory:

The ETF's recent performance and actively managed approach suggest potential for future growth. However, its limited track record and small asset base warrant caution.

Liquidity:

• Average Trading Volume: BSCM's average daily trading volume is approximately 10,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.10%, indicating a relatively low cost of trading.

Market Dynamics:

• Economic Indicators: Economic factors like interest rates and inflation can impact the performance of small- and mid-cap stocks.
• Sector Growth Prospects: The growth potential of the small- and mid-cap sectors can influence the ETF's performance.
• Market Volatility: The broader market's volatility can impact the ETF's price fluctuations.

Competitors:

• iShares Russell 2500 Value ETF (RVV)
• Vanguard Small-Cap Value ETF (VBR)
• SPDR S&P 600 Small Cap Value ETF (SLYV)

Expense Ratio:

BSCM's expense ratio is 0.75%, which is in line with comparable actively managed ETFs.

Investment Approach & Strategy:

• Strategy: BSCM actively manages its portfolio to dynamically allocate investments across US small- and mid-cap stocks.
• Composition: The ETF primarily invests in common stocks of small- and mid-cap companies.

Key Points:

• Actively managed with a quantitative approach.
• Focus on US small- and mid-cap stocks.
• Potential for outperformance compared to broad market indexes.
• Limited track record and small asset base.

Risks:

• Market Risk: The ETF's value is directly tied to the performance of underlying small- and mid-cap stocks, which can be volatile.
• Management Risk: The ETF's success relies on the effectiveness of its quantitative model and the management team's decisions.
• Liquidity Risk: BSCM's relatively low trading volume may result in wider bid-ask spreads and difficulty executing large trades.

Who Should Consider Investing:

BSCM is suitable for investors seeking:

• Potential for long-term capital appreciation.
• Exposure to the US small- and mid-cap market.
• Actively managed approach with a quantitative edge.

Risks should be carefully considered before investing.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors like financial performance, market position, and growth potential, BSCM receives a 6 out of 10.

This rating is based on the ETF's potential for outperformance, but its limited track record and small asset base require further monitoring.

Resources & Disclaimers:

• ETF Alpha Blue Capital US Small-Mid Cap Dynamic ETF website: https://alphabluecapital.com/etf/bscm/
• Morningstar: https://www.morningstar.com/etfs/arcx/bscm/quote
• Bloomberg: https://www.bloomberg.com/quote/BSCM:US

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Investors should conduct their research and consider their individual circumstances before making investment decisions.