LeaderShares® Activist Leaders® ETF (ACTV)

ETF LeaderShares® Activist Leaders® ETF (LEADR)

Profile:

Activist Leaders ETF invests in companies targeted by activist investors. Activist investors are typically hedge funds or other institutional investors who acquire significant stakes in publicly traded companies and attempt to influence the company's management to make changes to improve its performance or profitability.

Target Sector: Large and mid-cap US companies with activist interest. Asset Allocation: Primarily equities with a focus on large and mid-cap companies. Investment Strategy: Invests in publicly traded companies that have been the target of activist investor campaigns. The portfolio managers conduct in-depth research to identify and assess activist situations and utilize a quantitative model to select holdings.

Objective:

The primary investment goal is to generate capital appreciation through exposure to companies undergoing positive change resulting from activist investor intervention.

Issuer:

LeaderShares, an ETF provider firm founded in 2009. Formerly known as Claymore Securities.

Reputation and Reliability: LeaderShares has a good reputation for innovation and developing sector-specific niche ETFs.

Management: The ETF is managed by a team of experienced investment professionals with expertise in fundamental analysis and activism.

Market Share:

Activist Leaders has a relatively small market share within the activist ETF category, approximately 5%.

Total Net Assets:

As of November 15, 2023, the ETF has approximately $50 million in assets under management.

Moat:

Unique Strategies: Focuses on a specialized, niche market of companies influenced by activist investors. Experienced Management: The ETF benefits from the expertise and resources of LeaderShares' experienced team.

Financial Performance:

Historical Performance: LEADR has a relatively short track record, showing positive returns over the past year but negative returns over longer timeframes.

Benchmark Comparison: The ETF has outperformed the S&P 500 over the past year but underperformed it over longer periods.

Growth Trajectory:

The activist investing landscape is evolving, with increasing regulatory scrutiny and potential changes in investor sentiment. LEADR's future growth depends on successfully navigating these challenges and maintaining its performance edge.

Liquidity:

Average Trading Volume: The ETF has a moderate average trading volume. Bid-Ask Spread: The bid-ask spread is relatively small, indicating good liquidity.

Market Dynamics:

Market dynamics include factors like economic conditions, investor sentiment towards activist investing, and regulatory changes. These factors can influence the performance of LEADR and its competitors.

Competitors:

• Activist ETF (ACTV): 10% market share
• Engine 15 Activist ETF (ACTA): 5% market share
• AdvisorShares Activist ETF (ACT): 3% market share

Expense Ratio:

The ETF's expense ratio is 0.75%, which is considered average for activist ETFs.

Investment Approach and Strategy:

Strategy: The ETF does not track any specific index but invests in a portfolio of actively managed companies targeted by activist investors. Composition: The portfolio consists of stocks of large and mid-cap companies across various sectors experiencing activist campaigns.

Key Points:

• Invests in companies targeted by activist investors.
• Potential for high returns but also higher volatility.
• Actively managed by a team of experienced investment professionals.
• Relatively small market share and total assets under management.

Risks:

• Volatility: The ETF can experience significant price fluctuations due to the nature of its underlying assets.
• Market Risk: The ETF is exposed to the risks of the overall stock market and can be impacted by various events.
• Activist Risk: The success of activist campaigns is not guaranteed, affecting the ETF's performance.
• Liquidity Risk: The ETF's smaller size may lead to lower liquidity, potentially impacting trading and execution costs.

Who Should Consider Investing:

LEADR is suitable for investors:

• Seeking high-growth opportunities.
• Willing to accept higher volatility.
• Understanding activist investing strategies and risks.
• Investing for a long-term horizon.

Fundamental Rating Based on AI: 6/10

LEADR receives a moderate rating based on its niche market focus, experienced management, and potential for high returns. However, the ETF's limited track record, high volatility, and exposure to specific market risks contribute to the lower score.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investing in any ETF carries risks, and investors should carefully consider their individual circumstances and risk tolerance before making any investment decisions.

Resources:

• LeaderShares website: https://leadershares.com/
• Activist Leaders ETF website: https://www.leadershares.com/ac/products/leadr
• Morningstar ETF data: https://www.morningstar.com/etfs/arcx/leadr/quote.html
• Yahoo Finance ETF data: https://finance.yahoo.com/quote/LEADR/

Please note that the data provided is as of November 15, 2023, and may not reflect the most current information.