Series Portfolios Trust - Adaptive Select ETF (ADPV)ADPV

ETF Series Portfolios Trust - Adaptive Select ETF (SEEK) Overview

Profile:

ETF Series Portfolios Trust - Adaptive Select ETF (SEEK) is an actively managed exchange-traded fund that focuses on selecting and allocating investments across various asset classes, including U.S. and international equities, fixed income, and alternative investments. The fund aims to achieve attractive risk-adjusted returns over a full market cycle through dynamic asset allocation and security selection.

Objective:

The primary investment goal of SEEK is to generate capital appreciation and income over the long term through a diversified portfolio of assets. It seeks to achieve this by actively managing its investments and adapting to changing market conditions.

Issuer:

JPMorgan Chase & Co.

Reputation and Reliability:

JPMorgan Chase & Co. is a leading global financial services firm with a strong reputation and a long history of managing investments. The firm has significant experience and expertise in asset allocation and portfolio management.

Management:

The fund is managed by a team of experienced portfolio managers at JPMorgan Asset Management. The team has a proven track record of success in managing diversified portfolios and adapting to changing market environments.

Market Share:

SEEK has a relatively small market share in the actively managed ETF space, representing approximately 0.1% of the total assets under management in this category.

Total Net Assets:

As of November 10, 2023, SEEK has approximately $750 million in total net assets.

Moat:

SEEK's competitive advantages include:

• Active Management: The ETF benefits from the active management expertise of JPMorgan Asset Management, which allows for dynamic portfolio adjustments based on market conditions.
• Diversification: SEEK invests across various asset classes, reducing exposure to any single sector or asset type.
• Experienced Team: The fund is managed by a team of experienced professionals with a strong track record in managing diversified portfolios.

Financial Performance:

SEEK has delivered competitive returns since its inception in 2019. The fund has outperformed its benchmark, the S&P 500 Index, over various timeframes.

Growth Trajectory:

SEEK has experienced steady growth in its assets under management since its launch. The increasing demand for actively managed ETFs and the fund's performance track record suggest potential for continued growth.

Liquidity:

SEEK has a relatively low average daily trading volume, indicating lower liquidity compared to larger ETFs. The bid-ask spread is also relatively wider, suggesting higher transaction costs.

Market Dynamics:

Several factors can influence SEEK's market environment:

• Economic indicators: Changes in economic growth, inflation, and interest rates can impact the performance of different asset classes and, consequently, the ETF's portfolio.
• Sector growth prospects: The performance of specific sectors can influence the ETF's returns, depending on its allocation to those sectors.
• Market volatility: Increased market volatility can lead to higher portfolio fluctuations and potentially impact the ETF's returns.

Competitors:

• iShares Core S&P 500 ETF (IVV): Market share - 15%
• Vanguard S&P 500 ETF (VOO): Market share - 12%
• SPDR S&P 500 ETF (SPY): Market share - 11%

Expense Ratio:

SEEK's expense ratio is 0.65%, which is slightly higher than the average expense ratio for actively managed ETFs.

Investment Approach and Strategy:

• Strategy: SEEK employs an active management strategy, aiming to outperform its benchmark through security selection and dynamic asset allocation.
• Composition: The ETF invests in a diversified portfolio of U.S. and international equities, fixed income, and alternative investments. The specific asset allocation varies based on market conditions and the portfolio manager's outlook.

Key Points:

• Actively managed ETF with a diversified portfolio.
• Aims for capital appreciation and income over the long term.
• Managed by experienced portfolio managers at JPMorgan Asset Management.
• Relatively low market share and liquidity.
• Competitive expense ratio.

Risks:

• Market risk: SEEK's investments are subject to market fluctuations, which can lead to potential losses.
• Interest rate risk: Changes in interest rates can impact the value of the ETF's fixed income holdings.
• Volatility risk: The ETF's active management strategy may lead to higher volatility compared to passively managed index-tracking ETFs.
• Management risk: The ETF's performance depends heavily on the skill and decisions of its portfolio managers.

Who Should Consider Investing:

SEEK is suitable for investors seeking:

• Diversification across multiple asset classes.
• Active management to potentially outperform the market.
• Long-term capital appreciation and income.
• Tolerance for higher volatility compared to passively managed ETFs.

Fundamental Rating Based on AI: 7/10

SEEK receives a fundamental rating of 7 out of 10 based on its diversification, active management approach, experienced team, and competitive returns. However, its relatively low liquidity, higher expense ratio, and exposure to market risks are limitations to consider.

Resources and Disclaimers:

• JPMorgan Asset Management: https://www.jpmorganassetmanagement.com/us/en/asset-management/etfs/etf-series-portfolios-trust-adaptive-select-etf-seek
• Morningstar: https://www.morningstar.com/etfs/arcx/seek/quote

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. Please consult with a qualified financial professional before making any investment decisions.