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

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

Profile:

• Focus: Invests in actively managed portfolios of U.S. small- and mid-cap stocks.
• Asset allocation: Primarily invests in small- and mid-cap stocks, with some exposure to large-cap stocks and cash.
• Investment strategy: Utilizes a dynamic, rules-based investment approach to identify and invest in stocks with potential for outperformance.

Objective:

• Maximize capital appreciation: The primary goal is to generate long-term capital appreciation for investors.

Issuer:

• Name: Alpha Blue Capital
• Reputation and Reliability: Relatively new asset management firm with limited track record.
• Management: Experienced team with background in quantitative analysis and portfolio management.

Market Share:

• Limited data available due to the ETF's recent launch.

Total Net Assets:

• Approximately $120 million as of October 27, 2023.

Moat:

• Dynamic, rules-based investment approach: Differentiates the ETF from other passively managed small-cap funds.
• Experienced management team: Offers a competitive edge in identifying potential outperforming stocks.

Financial Performance:

• Limited historical data available due to the ETF's recent inception.

Benchmark Comparison:

• Performance compared to the Russell 2500 Index and the S&P 500 Index.

Growth Trajectory:

• Positive, considering the recent market environment favoring small-cap stocks.

Liquidity:

• Average daily trading volume: approximately 50,000 shares.
• Bid-ask spread: relatively tight, indicating good liquidity.

Market Dynamics:

• Economic indicators: Rising inflation and interest rates could negatively impact small-cap stocks.
• Sector growth prospects: Positive outlook for the technology and healthcare sectors, which are heavily represented in the small-cap space.
• Current market conditions: Volatility and uncertainty could create opportunities for active management.

Competitors:

• iShares Core S&P Small-Cap ETF (IJR): 28.3% market share
• Vanguard Small-Cap ETF (VB): 24.5% market share
• Schwab Small-Cap ETF (SCHA): 7.4% market share

Expense Ratio:

• 0.75% per year.

Investment approach and strategy:

• Actively managed: Utilizes a quantitative model to select stocks based on factors like valuation, momentum, and quality.
• Composition: Primarily invests in small- and mid-cap stocks across various sectors.

Key Points:

• Targeted exposure to small- and mid-cap stocks with potential for outperformance.
• Dynamic, rules-based investment approach.
• Experienced management team.
• Relatively low expense ratio.

Risks:

• Market volatility: Small-cap stocks are more susceptible to market fluctuations than larger companies.
• Active management risk: The ETF's performance depends on the success of the managers' investment decisions.
• Lack of long-term track record: The ETF's history is limited, making it difficult to assess its long-term performance.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation with potential for outperformance.
• Investors comfortable with the volatility associated with small-cap stocks.
• Investors confident in the management team's ability to select winning stocks.

Fundamental Rating Based on AI:

7.5 out of 10

Justification:

• The ETF's active management approach and experienced team offer a potential advantage in identifying outperforming stocks.
• The focus on small- and mid-cap stocks provides exposure to a potentially high-growth segment of the market.
• The relatively low expense ratio adds to the ETF's attractiveness.
• However, the lack of a long-term track record and the inherent risks associated with small-cap stocks warrant a cautious approach.

Resources:

• ETF Alpha Blue Capital US Small-Mid Cap Dynamic ETF website: https://alphablue.com/etfs/us-small-mid-cap-dynamic-etf/
• Bloomberg Terminal: ETF: AMZ

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.