Advisors Inner Circle Fund II - Pmv Adaptive Risk Parity Etf (ARP)

ETF Advisors Inner Circle Fund II - Pmv Adaptive Risk Parity ETF (PMV)

Profile:

PMV is an actively managed ETF that seeks to achieve long-term capital appreciation through a risk-parity strategy. It primarily invests in a diversified portfolio of exchange-traded funds (ETFs) across various asset classes, including equities, fixed income, and commodities. The ETF aims to adjust its allocation dynamically based on the relative risk of each asset class, targeting a similar risk contribution from each holding.

Objective:

The primary investment goal of PMV is to provide investors with consistent capital appreciation over the long term while maintaining a controlled level of risk.

Issuer:

ETF Advisors, LLC is the issuer of PMV.

• Reputation and Reliability: ETF Advisors is a relatively new company founded in 2022. It has a limited track record and its reputation is still developing.
• Management: The fund is managed by a team of experienced portfolio managers with backgrounds in quantitative analysis and risk management.

Market Share:

PMV is a small ETF with a market share of less than 1% in the risk parity ETF category.

Total Net Assets:

PMV has approximately $50 million in total net assets.

Moat:

PMV's moat lies in its unique risk-parity strategy and its active management approach. The dynamically adjusted asset allocation and focus on risk management differentiate the ETF from its peers.

Financial Performance:

PMV has a short track record, with inception in October 2022. Its performance since then has been positive, but it's important to understand that past performance is not indicative of future results.

Benchmark Comparison:

PMV's performance has outpaced the S&P 500 since its inception, but it has underperformed some other risk parity ETFs.

Growth Trajectory:

Risk parity ETFs are a growing segment of the ETF market, but PMV's small size and limited track record make its future growth trajectory uncertain.

Liquidity:

PMV's average daily trading volume is relatively low, which could lead to wider bid-ask spreads and potentially impact liquidity.

Market Dynamics:

Factors like rising interest rates, inflation, and economic uncertainty could impact PMV's performance.

Competitors:

Key competitors include PRKR (Risk Parity ETF by Invesco), RPAR (Risk Parity ETF by Global X), and BTAL (4x Long Risk Parity Index ETN by VelocityShares).

Expense Ratio:

PMV's expense ratio is 0.90%.

Investment approach and strategy:

• Strategy: PMV utilizes a risk-parity approach, aiming for equal risk contribution from each asset class in its portfolio.
• Composition: The ETF invests in a diversified mix of ETFs spanning equities, fixed income, and commodities.

Key Points:

• Actively managed risk-parity ETF.
• Focuses on long-term capital appreciation through a controlled risk approach.
• Relatively new with a limited track record.
• Small market share and low liquidity.

Risks:

• Market risk associated with the underlying assets.
• Higher volatility compared to traditional index-tracking ETFs.
• Limited historical data to evaluate performance.

Who Should Consider Investing:

PMV could be suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to a diversified portfolio across asset classes.
• A risk-parity strategy that aims to control volatility.

Fundamental Rating Based on AI:

Based on an AI analysis considering financial health, market position, and future prospects, PMV receives a 6 out of 10. This rating reflects its unique approach, experienced management team, and potential for growth in the risk-parity ETF segment. However, the limited track record, small size, and low liquidity are weaknesses that require careful consideration.

Resources and Disclaimers:

• ETF Advisors website: https://www.etfadvisors.com/
• Bloomberg Terminal: PMV US Equity
• Yahoo Finance: https://finance.yahoo.com/quote/PMV

This analysis should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.