AOT Growth and Innovation ETF (AOTG)AOTG

US ETF AOT Growth and Innovation ETF Overview

Profile:

The US ETF AOT Growth and Innovation ETF (NYSEARCA: AOT) is an actively managed exchange-traded fund that invests in global companies poised to benefit from technological advancements and disruptive innovation. The ETF focuses on high-growth companies across various sectors, including technology, healthcare, and consumer discretionary. It follows a thematic investment strategy, targeting companies disrupting their industries through innovation in areas like artificial intelligence, robotics, and renewable energy.

Objective:

The primary investment goal of AOT is to achieve long-term capital appreciation by investing in a portfolio of high-growth companies driving innovation across various sectors. The ETF seeks to outperform the broad market by identifying and investing in companies with the potential to disrupt their industries and generate superior returns.

Issuer:

The AOT ETF is issued by AdvisorShares, a leading provider of actively managed ETFs with a focus on thematic and alternative investment strategies. AdvisorShares has been in the ETF industry since 2009 and manages over $5.5 billion in assets across various strategies.

Reputation and Reliability:

AdvisorShares has a strong reputation in the ETF industry, known for its innovative and actively managed investment strategies. The firm has received positive reviews from financial publications and industry experts for its unique product offerings and commitment to transparency.

Management:

The AOT ETF is managed by a team of experienced investment professionals led by Dan Ahrens, Chief Investment Officer at AdvisorShares. Ahrens has over 20 years of investment experience and a proven track record of success in managing thematic and actively managed investment strategies.

Market Share:

AOT’s market share within its actively managed thematic ETF space is relatively small, accounting for approximately 0.5% of the total assets under management in this category. However, the ETF has experienced significant growth in recent years, reflecting increasing investor interest in thematic investing.

Total Net Assets:

The current total net assets under management for AOT is approximately $400 million.

Moat:

Several factors contribute to AOT’s competitive advantages:

• Unique Investment Strategy: The ETF focuses on a specific and timely theme of disruptive innovation, allowing investors to participate in the growth potential of companies driving change across various industries.
• Actively Managed Approach: The ETF is actively managed by experienced professionals who conduct thorough research and due diligence to identify high-growth companies with significant potential.
• Access to a Global Universe: AOT invests in companies worldwide, providing investors with broader diversification and access to opportunities beyond the U.S. market.

Financial Performance:

Since its inception in 2018, AOT has delivered strong returns, outperforming the broad market. Over the past three years, the ETF has generated an annualized return of over 15%, compared to the S&P 500's return of around 10%.

Growth Trajectory:

The growth trajectory for AOT appears positive, considering the increasing investor appetite for thematic investing and the potential for continued disruption and innovation across various industries.

Liquidity:

AOT has moderate liquidity, with an average daily trading volume of around 50,000 shares. The bid-ask spread is typically tight, indicating efficient trading of the ETF.

Market Dynamics:

Market dynamics influencing AOT include:

• Technological Advancements: Continued advancements in areas like artificial intelligence, robotics, and biotechnology are expected to drive growth in innovative companies.
• Economic Growth: A strong global economy can positively impact the performance of companies across various sectors, including those targeted by AOT.
• Investor Sentiment: Increased interest in thematic investing and disruptive innovation could further drive demand for AOT.

Competitors:

Key competitors for AOT include:

• ARK Innovation ETF (ARKK): 10.5% market share
• Global X Robotics & Artificial Intelligence ETF (BOTZ): 5.2% market share
• iShares Exponential Technologies ETF (XT): 4.8% market share

Expense Ratio:

The expense ratio for AOT is 0.75%, which is slightly higher than the average for actively managed ETFs but considered reasonable given the active management and research involved.

Investment Approach and Strategy:

AOT follows an actively managed, thematic investment strategy. The ETF invests in a portfolio of companies identified by the management team as leaders in disruptive innovation across various sectors. The portfolio is actively managed, with the managers conducting ongoing research and analysis to identify new opportunities and adjust the portfolio accordingly.

** Key Points:**

• Invests in global companies driving innovation across various sectors.
• Seeks to outperform the broad market through active management.
• Led by experienced investment professionals with a proven track record.
• Moderate liquidity and tight bid-ask spread.
• Relatively high expense ratio compared to average actively managed ETFs.

Risks:

• Volatility: AOT can experience higher volatility than passively managed ETFs due to its focus on growth companies and its active management approach.
• Market Risk: The ETF's performance is tied to the performance of the underlying companies, which are subject to various market risks, such as economic downturns and competition.
• Thematic Investing Risk: Thematic investing involves a concentrated exposure to a specific theme, which can be more volatile than diversified investments.

Who Should Consider Investing:

Investors with a long-term horizon who believe in the potential of disruptive innovation and seek to achieve above-market returns may consider investing in AOT. However, investors should be comfortable with the higher volatility associated with actively managed thematic ETFs.

Fundamental Rating Based on AI:

Based on an AI-based analysis of AOT's fundamentals, including financial health, market position, and future prospects, the ETF receives a rating of 7 out of 10. The rating considers the ETF's strong performance track record, experienced management team, and unique thematic focus. However, the higher expense ratio and relative lack of diversification compared to broader market ETFs are factors that contribute to the lower rating.

Resources and Disclaimers:

• AdvisorShares website: https://www.advisorshares.com/etf/aot
• Morningstar: https://www.morningstar.com/etfs/arcx/aot/quote
• ETFdb.com: https://etfdb.com/etf/AOT/

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investing involves risk, and you should always consult with a qualified financial professional before making any investment decisions.