LeaderShares® Activist Leaders® ETF (ACTV)

Overview of ETF LeaderShares® Activist Leaders® ETF (ACTX)

Profile:

The ETF LeaderShares® Activist Leaders® ETF (ACTX) invests in the equity securities of North American companies that are the subject of activist campaigns. These campaigns typically involve investors who seek to improve the company's management, operations, or share price.

Objective:

The ETF's primary investment goal is to maximize total return, which can be achieved through capital appreciation and dividend income.

Issuer:

LeaderShares® is a thematic ETF issuer, focusing on specialized areas of the market with unique investable themes.

Reputation and Reliability:

LeaderShares is a relatively small ETF issuer with a limited track record. However, its CEO, Charles Sheng, has extensive experience in the financial industry, having previously held positions at Deutsche Bank and Credit Suisse.

Management:

The ETF is managed by Innerspectrum Capital, a specialist investment firm focusing on activist investing. Innerspectrum's team has experience in identifying and executing value-enhancing activist campaigns.

Market Share:

ACTX is a relatively small ETF in the activist investing space, with a market share of about 4%.

Total Net Assets:

As of October 26, 2023, ACTX has about $412 million in total net assets.

Moat:

ACTX's key competitive advantages include:

• Unique Focus: It offers concentrated exposure to activist-targeted companies, a niche not many other ETFs explore.
• Experienced Management: Innerspectrum Capital's expertise in activist investing could potentially lead to superior performance.

Financial Performance:

ACTX's historical performance data is limited due to its recent launch. However, it has shown strong returns since its inception in March 2023.

Benchmark Comparison:

ACTX has outperformed the S&P 500 Index since its inception.

Growth Trajectory:

The activist investing industry is expected to grow in the coming years as investors increasingly seek alternative investment approaches.

Liquidity:

ACTX has a moderate average trading volume, which indicates moderate liquidity.

Bid-Ask Spread:

The bid-ask spread for ACTX is relatively narrow, reflecting its efficient trading.

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Activist Investing landscape: Increased regulatory scrutiny and competition in the activist investing space could impact performance.
• Performance of Activist-Targeted Companies: The returns of ACTX will depend heavily on the success of the activist campaigns targeting its portfolio companies.

Competitors:

The top competitors of ACTX include:

• Cambria Activist 50 ETF (JACK) - Market Share: 5%
• The Activist ETF (ACT) - Market Share: 4%

Expense Ratio:

The expense ratio for ACTX is 0.95%, which is above average for its category.

Investment Approach and Strategy:

ACTX actively manages its portfolio and invests in the equities of companies engaged in activist campaigns.

Composition:

The ETF primarily invests in a diversified portfolio of U.S. and Canadian companies across various sectors.

Key Points:

• ACTX offers exposure to companies targeted by activist investors, aiming for superior returns.
• The ETF is managed by Innerspectrum Capital, a team with expertise in activist investing.
• ACTX has demonstrated strong performance since its inception.

Risks:

• Volatility: Activist investing is inherently volatile, leading to potential fluctuations in portfolio value.
• Market risk: The ETF's performance relies heavily on the success of activist campaigns and underlying companies, making it susceptible to market fluctuations.

Who Should Consider Investing:

ACTX is suitable for investors with a high-risk tolerance and seeking exposure to the activist investing landscape.

Fundamental Rating Based on AI:

7.5: ACTX's unique focus, experienced management, and solid performance indicate potential for future growth. However, its limited track record and high expense ratio warrant cautious consideration.

Resources:

• ETF LeaderShares® Activist Leaders® ETF (ACTX) website: https://www.leadershares.com/etf/actx/
• Innerspectrum Capital website: https://innerspectrum.com/
• Activist Investing Data website: https://activisminvestingdata.com/

Disclaimer: This information is provided for educational purposes only and should not be considered financial advice. Please conduct your own research and consult with a financial professional before making any investment decisions.