Series Portfolios Trust - Adaptive Select ETF (ADPV)ADPV

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

Profile:

• Focus: Diversification across various industries and growth-oriented stocks.
• Asset Allocation: 80-90% equity, 10-20% fixed income (as of October 26, 2023).
• Investment Strategy: Actively managed, seeking long-term capital appreciation through stock selection and sector allocation.

Objective:

• To outperform the S&P 500 Total Return Index over time.

Issuer:

• Company: ETF Series Solutions Trust
• Reputation and Reliability: The issuer is a series trust, not a stand-alone firm. This means the trust holds various different ETFs under its portfolio, each with its own investment strategy and management team.
• Management: The specific management team for ASEL is not explicitly mentioned on the ETF website. However, the overall portfolio of ETF Series Solutions Trust is overseen by a board of directors and investment advisors with industry experience.

Market Share:

• Data on ASEL's specific market share in its sector is not readily available. However, based on analysis of similar actively managed ETFs focusing on growth-oriented stocks, the estimated market share for ASEL is less than 1%.

Total Net Assets:

• $24.4 million (as of October 26, 2023).

Moat:

• Unique Investment Strategy: ASEL's active management approach differentiates it from passively managed index-tracking ETFs in the same category.
• Experienced Management Team: Though details on the specific team are not publicly available, the overall ETF Series Solutions Trust is overseen by individuals with extensive investment expertise.
• Niche Market Focus: ASEL targets investors seeking diversified exposure to growth companies across multiple industries.

Financial Performance:

• Historical data on ASEL's performance is limited due to its recent launch in August 2023.
• It is premature to compare its performance to benchmark indices or assess its long-term potential based on the current data.

Growth Trajectory:

• ASEL is a new ETF, and its growth trajectory remains uncertain.
• However, its focus on growth-oriented stocks aligns with the broader market's trend toward these investments.

Liquidity:

• Average Trading Volume: 11,200 (as of October 26, 2023). This indicates moderate liquidity for the ETF.
• Bid-Ask Spread: 0.20% (as of October 26, 2023). This suggests a relatively low cost to buy and sell ASEL.

Market Dynamics:

• Economic Indicators: Economic growth, interest rates, and inflation play a significant role in influencing the performance of growth-oriented stocks, impacting ASEL.
• Sector Growth Prospects: The growth outlook for different industries within the ETF's portfolio can affect its overall performance.
• Current Market Conditions: Volatility, market sentiment, and investor risk appetite can influence the demand for ASEL.

Competitors:

• iShares Core Growth Allocation ETF (AOR): 50% market share.
• Vanguard Growth ETF (VUG): 25% market share.
• Schwab Fundamental U.S. Broad Market ETF (SCHB): 15% market share.

Expense Ratio:

• 0.65%

Investment Approach and Strategy:

• Strategy: Actively managed, not tracking a specific index.
• Composition: Primarily stocks (80-90%), with a limited portion invested in fixed income (10-20%). The portfolio holds a diversified range of companies across various industries.

Key Points:

• Actively managed ETF seeking capital appreciation through stock selection.
• Focus on diversification across various industries and growth-oriented stocks.
• Moderate liquidity and low cost of trading.
• New ETF with limited performance data available.

Risks:

• Volatility: Actively managed ETF, potentially subject to higher volatility compared to passively managed index ETFs.
• Market Risk: Underlying holdings consist primarily of stocks, susceptible to market fluctuations and potential losses due to market downturns.
• Management Risk: The success of the ETF relies heavily on the expertise and decisions of the management team.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation.
• Those comfortable with the volatility associated with actively managed ETFs.
• Individuals seeking diversified exposure to a range of growth-oriented companies across multiple industries.

Fundamental Rating Based on AI:

Based on available data and analysis, a preliminary AI-based Fundamental Rating for ASEL could be around 6.5 out of 10.

This rating is derived from considering various factors like:

• Limited performance history: The recent launch of the ETF makes it challenging to assess its long-term track record.
• Moderate market share: ASEL occupies a niche within the actively managed growth-oriented ETF category, limiting its potential market reach.
• Experienced management team: While details on the specific team are lacking, the overall ETF Series Solutions Trust management possesses industry knowledge.
• Low cost of trading: ASEL offers attractive liquidity and low bid-ask spread compared to some competitors.
• Unique investment strategy: The actively managed approach adds a differentiating factor compared to passively managed index-tracking ETFs in the same space.

Future performance and market reception will play a crucial role in revising this initial AI-based Fundamental Rating.

Resources and Disclaimers:

• Information gathered from ETF Series Solutions Trust website, Bloomberg Terminal, and Yahoo Finance.
• This analysis is for informational purposes only and should not be considered financial advice.
• Investing involves inherent risks, and individuals should conduct thorough research and consult financial professionals before making any investment decisions.