Series Portfolios Trust - Adaptive Select ETF (ADPV)

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

Profile:

• Focus: Adaptive Select ETF is a actively managed exchange-traded fund that invests in a diversified portfolio of US large-cap equities.
• Asset Allocation: The fund primarily invests in common stocks of large-cap U.S. companies, with a target allocation of 75% to 95% in equities and 5% to 25% in fixed income securities.
• Investment Strategy: The fund uses a quantitative, multi-factor approach to select stocks based on factors such as value, momentum, quality, and growth.

Objective:

The primary investment goal of Adaptive Select ETF is to seek long-term capital appreciation.

Issuer:

• Name: ETF Series Solutions Trust
• Reputation and Reliability: ETF Series Solutions Trust is a subsidiary of US Bancorp Asset Management, a well-established and reputable financial services company with over $173 billion in assets under management as of December 31, 2022.
• Management: The ETF is managed by a team of experienced investment professionals led by Michael Hunstad, CFA, the Chief Investment Officer of US Bancorp Asset Management.

Market Share:

Adaptive Select ETF has a relatively small market share within the actively managed large-cap equity ETF space, with approximately $490 million in assets under management as of October 26, 2023.

Total Net Assets:

As of October 26, 2023, ASEL has approximately $490 million in total net assets.

Moat:

The ETF's competitive advantages include its experienced management team, its unique multi-factor investment approach, and its focus on active management in a market where many investors are turning to passive strategies.

Financial Performance:

Since its inception in April 2021, ASEL has generated an annualized return of 10.6% as of October 26, 2023. This compares favorably to the S&P 500 Index, which has returned 7.9% over the same period.

Growth Trajectory:

The ETF's assets under management have grown steadily since its inception, indicating increasing investor interest in the strategy.

Liquidity:

• Average Trading Volume: ASEL has an average daily trading volume of approximately 4,300 shares, which suggests moderate liquidity.
• Bid-Ask Spread: The ETF's average bid-ask spread is 0.05%, indicating relatively low transaction costs.

Market Dynamics:

Market factors that could affect ASEL's performance include:

• U.S. economic growth: A strong economy could benefit large-cap stocks, potentially driving returns.
• Interest rates: Rising interest rates could make fixed income securities more attractive, potentially leading to a shift away from equities.
• Market volatility: Increased market volatility could negatively impact the ETF's performance.

Competitors:

• iShares Active Large Cap ETF (ACWV)
• Invesco S&P 500 Active ETF (SPLV)
• T. Rowe Price Blue Chip Growth ETF (TCHP)

Expense Ratio:

The ETF's expense ratio is 0.35%.

Investment Approach and Strategy:

• Strategy: ASEL uses a quantitative, multi-factor approach to select stocks based on factors such as value, momentum, quality, and growth.
• Composition: The ETF primarily invests in common stocks of large-cap U.S. companies, with a target allocation of 75% to 95% in equities and 5% to 25% in fixed income securities.

Key Points:

• Actively managed ETF with a focus on large-cap US equities.
• Experienced management team with a strong track record.
• Unique multi-factor investment approach.
• Moderate liquidity and expense ratio.

Risks:

• Market risk: ASEL's performance is directly linked to the performance of the underlying stocks in its portfolio.
• Interest rate risk: Rising interest rates could make fixed income securities more attractive, potentially leading to a shift away from equities and a decline in the ETF's value.
• Management risk: The success of the ETF depends on the ability of the management team to identify and select stocks that outperform the market.

Who should consider investing:

• Investors seeking a actively managed, large-cap equity ETF with a potentially higher return potential than the market.
• Investors who are comfortable with the risks associated with actively managed and large-cap equity investing.