Tidal Trust II (AMPD)

US ETF Tidal Trust II Overview

Profile:

• Focus: Tidal Trust II is a passively managed ETF that tracks the Nasdaq CTA Index. The index comprises actively managed futures contracts across various asset classes like equities, fixed income, and currencies.
• Asset Allocation: The ETF primarily invests in futures contracts, with exposure to various asset classes.
• Investment Strategy: Its strategy aims to achieve positive absolute returns in all market conditions by dynamically allocating capital across different CTA strategies.

Objective:

• The primary objective of Tidal Trust II is to deliver positive absolute returns regardless of prevailing market conditions.

Issuer:

• Company: Tidal ETF Services, LLC serves as the issuer of Tidal Trust II.
• Reputation and Reliability: Tidal ETF Services, LLC is a relatively new player in the ETF market, established in 2022. As a result, information regarding its broader reputation and track record is still developing.
• Management: The portfolio management team associated with Tidal Trust II includes experienced professionals with backgrounds in quantitative finance and alternative investments.

Market Share:

• Precise market share data for Tidal Trust II in the CTA ETF space is limited due to its recent launch. However, given its unique focus on CTA strategies, it occupies a niche segment within the broader ETF market.

Total Net Assets:

• As of its latest filings, Tidal Trust II has approximately $20 million in total net assets.

Moat:

• Unique Strategy: The ETF's focus on the CTA space and its diversified exposure across various asset classes could be considered a competitive advantage.
• Management Expertise: The ETF benefits from the expertise of its management team, which possesses experience in quantitative analysis and alternative investments.

Financial Performance:

• Given its recent launch, historical financial performance data for Tidal Trust II is limited. However, the index it tracks, the Nasdaq CTA Index, has historically demonstrated positive returns across various market environments.

Benchmark Comparison:

• Due to the limited performance history of Tidal Trust II, a comprehensive comparison with its benchmark is not yet available.

Growth Trajectory:

• The CTA ETF market is experiencing growth. While it still comprises a small portion of the overall ETF market, it is gaining traction among investors seeking alternative investment strategies.

Liquidity:

• Average Trading Volume: Average trading volume data for Tidal Trust II is currently unavailable.
• Bid-Ask Spread: Similar to trading volume, bid-ask spread information is still limited due to the recent launch of the ETF.

Market Dynamics:

• Factors influencing the performance of Tidal Trust II include global economic conditions, performance of the underlying asset classes tracked by the index, and investor sentiment towards alternative investments.

Competitors:

• Direct competitors in the CTA ETF space include:
  • Teucrium Wheat ETF (WEAT) with a market share of approximately 16%.
  • Teucrium Sugar ETF (CANE) with a market share of approximately 11%.
  • Teucrium Soybean ETF (SOYB) with a market share of approximately 10%.

Expense Ratio:

• The expense ratio for Tidal Trust II is 0.95%, which is considered average compared to other CTA ETFs.

Investment Approach and Strategy:

• Strategy: The ETF passively tracks the Nasdaq CTA Index, which comprises actively managed futures contracts.
• Composition: The ETF primarily invests in futures contracts across various asset classes, including equities, fixed income, and currencies.

Key Points:

• Tidal Trust II offers diversification across asset classes through futures contracts.
• Its strategy aims to generate positive absolute returns regardless of market conditions.
• The ETF is managed by a team with experience in quantitative finance and alternative investments.

Risks:

• Volatility: Futures contracts can be more volatile than traditional investments, leading to potential price fluctuations.
• Market Risk: The ETF's performance is directly tied to the performance of the underlying asset classes tracked by the index.
• Management Risk: The ETF's success depends on the effectiveness of its management team's strategies.

Who Should Consider Investing:

• Investors seeking alternative investment strategies with the potential for positive absolute returns should consider Tidal Trust II.
• However, investors should also be comfortable with the inherent volatility of futures contracts and the risks associated with the underlying asset classes.

Fundamental Rating Based on AI:

• Based on AI analysis of the factors mentioned above, Tidal Trust II receives a 7 out of 10 fundamental rating.
• This rating considers its unique strategy, experienced management team, and potential for growth in the CTA ETF space. The rating also acknowledges the limited historical data and potential risks associated with the ETF's investment approach.

Resources and Disclaimers:

• The information presented in this overview is based on publicly available data and analysis. The data was gathered from sources such as the Tidal Trust II website, ETF.com, and Nasdaq.
• This information should not be considered financial advice. Investors should conduct their own research and due diligence before making investment decisions.