LeaderShares® Activist Leaders® ETF (ACTV)

Overview

The LeaderSharesu00ae Activist Leadersu00ae ETF (ACTV) seeks to provide investment results that correspond generally to the price and yield performance of the Active Alphau00ae Activist Leadersu00ae Index. It focuses on companies that are being targeted by activist investors, aiming to capitalize on potential positive changes within those companies. The fund invests primarily in U.S. equities.

Reputation and Reliability

LeaderShares is a boutique ETF provider known for its niche and thematic investment strategies. While not one of the largest issuers, they are known for innovation.

Management Expertise

The management team has experience in developing and managing specialized ETF strategies. Their expertise is in identifying and tracking indices related to specific investment themes.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Active Alphau00ae Activist Leadersu00ae Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Active Alphau00ae Activist Leadersu00ae Index, which is designed to identify companies where activist investors are actively engaged.

Composition The ETF primarily holds U.S. equities that are targets of activist investors. The holdings are weighted based on the index methodology, which considers factors related to activist investor activity and company fundamentals.

Market Share: Market share data for niche ETFs like ACTV can be limited, but it is a small player in the overall ETF market.

Total Net Assets (AUM): The AUM of ACTV is approximately $35.78 million as of October 26, 2023

Key Competitors

• CXSE (WisdomTree China ex-State-Owned Enterprises Fund)
• ESGV (Vanguard ESG U.S. Stock ETF)
• DSI (iShares MSCI KLD 400 Social ETF)

Competitive Landscape

The ETF industry is highly competitive, with numerous ETFs offering exposure to various market segments. ACTV distinguishes itself with its focus on companies targeted by activist investors, a niche strategy that sets it apart. A potential disadvantage is its smaller AUM and trading volume compared to larger, more established ETFs. This leads to it being highly volatile.

Historical Performance: Historical performance data is readily available. As of October 25, 2024, 1-Year trailing return is 16.24%; 3-Year trailing return is 10.19%; Inception return is 9.87%

Benchmark Comparison: The ETF's performance should be compared to the Active Alphau00ae Activist Leadersu00ae Index to evaluate its tracking effectiveness.

Expense Ratio: The expense ratio for ACTV is 0.79%.

Average Trading Volume

ACTV's average trading volume is relatively low, potentially impacting trade execution.

Bid-Ask Spread

The bid-ask spread for ACTV can be wider than more liquid ETFs, reflecting its lower trading volume.

Market Environment Factors

Economic indicators, investor sentiment, and the overall health of the U.S. equity market can all impact ACTV's performance. Regulatory changes impacting activist investing could also have an effect.

Growth Trajectory

The growth trajectory of ACTV depends on the continued interest in activist investing and the fund's ability to attract assets. Changes in the index methodology and holdings can also influence its performance.

Competitive Edge

ACTV's competitive advantage lies in its unique focus on companies targeted by activist investors. This niche strategy provides exposure to potential value creation through corporate governance changes and operational improvements driven by activist campaigns. By tracking the Active Alphau00ae Activist Leadersu00ae Index, it aims to capitalize on the expertise and influence of activist investors. The ETF may appeal to investors seeking differentiated investment strategies.

Volatility

ACTV may experience higher volatility due to its concentrated holdings and focus on companies undergoing change. It has a beta of 1.22

Market Risk

The ETF is subject to market risk, as its performance is tied to the overall performance of the U.S. equity market and the specific companies it holds. The success of activist campaigns is not guaranteed, adding another layer of risk.

Ideal Investor Profile

The ideal investor for ACTV is someone with a higher risk tolerance who is interested in alternative investment strategies and believes in the potential for value creation through activist investing.

Market Risk

ACTV may be more suitable for active traders or investors seeking thematic exposure within a broader portfolio. Due to its potential volatility, it may not be ideal for conservative, long-term investors.

The LeaderSharesu00ae Activist Leadersu00ae ETF (ACTV) offers a unique investment strategy by focusing on companies targeted by activist investors. Its performance depends on the success of these activist campaigns and the overall market environment. The ETF may appeal to investors with a higher risk tolerance seeking exposure to potential value creation through corporate governance changes. However, investors should be aware of the potential for volatility and the importance of diversification. ACTV's niche focus differentiates it from broader market ETFs, making it a thematic choice for those interested in activist investing.

Data Sources:

• Leadershares.com
• etfdb.com
• Seeking Alpha

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market share estimations are based on available data and may not be precise.