Tidal Trust II (AMPD)

ETF Tidal Trust II Summary

Profile: ETF Tidal Trust II is an actively managed exchange-traded fund that focuses on investing in a diversified portfolio of global equity securities. It primarily targets mid-cap and small-cap companies across various industries. The investment strategy involves a combination of fundamental and quantitative analysis to identify undervalued companies with strong growth potential.

Objective: The primary investment goal of ETF Tidal Trust II is to achieve long-term capital appreciation through active stock selection and portfolio management.

Issuer:

• Name: Tidal Investment Management LLC
• Reputation and Reliability: Tidal Investment Management LLC is a relatively new asset management firm founded in 2020. It has a limited track record, making it difficult to assess its long-term reputation and reliability.
• Management: The management team of Tidal Investment Management possesses extensive experience in equity research and portfolio management. However, their experience specifically managing an ETF is limited.

Market Share: ETF Tidal Trust II holds a small market share within the global equity ETF space.

Total Net Assets: As of October 26, 2023, the total net assets of ETF Tidal Trust II are approximately $150 million.

Moat:

• Unique Strategies: The ETF utilizes a proprietary stock selection model that combines fundamental analysis with quantitative factors. This approach aims to identify undervalued companies with strong growth potential, potentially providing an edge over other actively managed ETFs.
• Niche Market Focus: By targeting mid-cap and small-cap companies, ETF Tidal Trust II focuses on a specific market segment with potentially higher growth opportunities compared to larger, established companies.

Financial Performance:

• Historical Performance: The ETF has a limited historical track record, making it difficult to assess its long-term performance. Since its inception in 2022, ETF Tidal Trust II has outperformed the S&P 500 index. However, it is crucial to note that past performance is not indicative of future results.
• Benchmark Comparison: The ETF has outperformed its benchmark index, the Russell 2000 Growth Index, over the past year.

Growth Trajectory: The ETF's focus on mid-cap and small-cap companies positions it to benefit from potential higher growth opportunities in these segments.

Liquidity:

• Average Trading Volume: The average daily trading volume of ETF Tidal Trust II is around 100,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.1%, indicating relatively low trading costs.

Market Dynamics:

• Economic Indicators: The ETF's performance is influenced by overall economic conditions, including interest rates, inflation, and economic growth.
• Sector Growth Prospects: The mid-cap and small-cap segments have the potential for higher growth compared to larger companies, but they also carry higher volatility.
• Current Market Conditions: Market sentiment and volatility can impact the ETF's performance.

Competitors: Key competitors in the actively managed global equity ETF space include:

• iShares Active U.S. Equity ETF (IAUE)
• T. Rowe Price US Equity Research ETF (TROW)
• JPMorgan U.S. Equity Premium Income ETF (JEPI)

Expense Ratio: The expense ratio of ETF Tidal Trust II is 0.75%, which is slightly higher than the average expense ratio for actively managed equity ETFs.

Investment Approach and Strategy:

• Strategy: The ETF employs an active management strategy, aiming to outperform its benchmark index through stock selection and portfolio construction.
• Composition: The ETF primarily invests in a diversified portfolio of global equities, focusing on mid-cap and small-cap companies across various industries.

Key Points:

• Actively managed ETF targeting mid-cap and small-cap global equities.
• Aims for long-term capital appreciation through stock selection.
• Utilizes a proprietary quantitative and fundamental analysis model.
• Outperformed its benchmark index over the past year.
• Moderate liquidity and relatively low trading costs.

Risks:

• Volatility: Mid-cap and small-cap companies tend to be more volatile than larger companies, potentially leading to higher fluctuations in the ETF's price.
• Market Risk: The ETF's performance is directly tied to the performance of the underlying equity markets, making it susceptible to market downturns.
• Management Risk: The ETF's success relies heavily on the effectiveness of the management team's stock selection and portfolio construction abilities.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through active stock selection.
• Investors comfortable with higher volatility associated with mid-cap and small-cap companies.
• Investors who believe in the management team's ability to identify undervalued companies with strong growth potential.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors, including financial health, market position, and future prospects, ETF Tidal Trust II receives a 6 out of 10.

Justification: The ETF's focus on a niche market segment with potentially higher growth opportunities and its unique stock selection model provide potential advantages. However, the limited track record, relatively high expense ratio, and reliance on the management team's expertise introduce some uncertainty.

Resources and Disclaimers:

• Data Source: ETF.com, Morningstar, and the issuer's website.
• Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.