Aztlan Global Stock Selection Dm SMID ETF (AZTD)AZTD

Aztlan Global Stock Selection Dm SMID ETF: A Deep Dive

Profile

Overview: The Aztlan Global Stock Selection DM SMID ETF (ticker: AZSM) is an actively managed ETF that invests in small and mid-cap (SMID) stocks across developed markets globally. The ETF focuses on fundamentally strong companies with strong growth potential and aims to deliver long-term capital appreciation through careful stock selection.

Target Sector: Global Developed Markets (ex-US) SMID Stocks Asset Allocation: Primarily Equity (SMID stocks) Investment Strategy: Active Management, Fundamental Analysis

Objective

Main Goal: Achieving long-term capital appreciation by investing in high-quality SMID companies across developed markets outside of the US.

Issuer

Issuer: Aztlan Capital Management LLC Reputation & Reliability: Aztlan Capital Management is a relatively new asset manager founded in 2018, with limited historical track record. Management: The portfolio management team has extensive experience in global equities, with prior experience at reputable investment firms.

Market Share & Assets

Market Share: AZSM currently holds a small market share in the Developed Markets SMID ETF category. Total Net Assets: Approximately $XX million (as of October 26, 2023)

Moat

Competitive Advantages:

• Active Management: AZSM employs an active management approach, aiming to outperform its benchmark through rigorous stock selection.
• Experienced Management: The team leverages their extensive global equities expertise to identify promising SMID companies.
• Niche Focus: AZSM focuses on a specific segment within developed markets, potentially offering diversification benefits and exposure to under-researched opportunities.

Financial Performance

Historical Returns: Past performance is not indicative of future results, but analyzing AZSM's historical returns can help gauge its effectiveness. Include data on its performance across different timeframes (e.g., 1 year, 3 years, 5 years) compared to its benchmark index.

Benchmark Comparison: Analyze AZSM's performance against its benchmark, highlighting periods of outperformance and underperformance. This helps understand the effectiveness of its active management approach.

Growth Trajectory: Assess recent trends in AZSM's performance, analyzing factors driving its growth or decline.

Liquidity

Average Trading Volume: Provide the average daily trading volume of AZSM shares, indicating its liquidity and ease of trading. Bid-Ask Spread: Present the bid-ask spread of AZSM, demonstrating the transaction cost involved in buying or selling shares.

Market Dynamics

Factors Affecting AZSM: Analyze key factors impacting AZSM's market environment, such as:

• Global economic trends
• Developed market equities performance
• Specific sector growth prospects
• Geopolitical events
• Interest rate fluctuations

Competitors

Key Competitors: List major competitors in the Developed Markets SMID ETF space, including their ticker symbols and market share percentages. This provides context for AZSM's competitive landscape.

Expense Ratio

Expense Ratio: State the ETF's expense ratio, which includes management fees and operational costs. This helps investors assess the cost of investing in AZSM.

Investment Approach & Strategy

Strategy: Clarify whether the ETF tracks a specific index or utilizes an active management approach. Composition: Describe the types of assets held by the ETF, primarily focusing on its equity holdings and their regional and sector distribution.

Key Points

Summary of Important Features: Briefly summarize the key features and benefits of investing in AZSM, highlighting its active management, niche focus, and experienced team.

Risks

Main Risks: Discuss the major risks associated with AZSM, including:

• Market Volatility: AZSM's focus on SMID stocks can expose it to higher volatility than broader market indices.
• Specific Sector Risks: The ETF's concentration on specific sectors can amplify its exposure to industry-specific risks and events.
• Active Management Risk: AZSM's reliance on active management introduces the risk that the portfolio managers may underperform the benchmark or make inaccurate investment decisions.

Who Should Consider?

Ideal Investor Profile: Identify the type of investor who might find AZSM suitable based on their risk tolerance, investment goals, and diversification needs. This could include investors seeking:

• Long-term capital growth
• Exposure to developed market SMID companies
• Active management and potentially higher returns
• Tolerance for higher volatility

Fundamental Rating Based on AI

Rating (1-10): Provide an AI-driven rating for AZSM's fundamentals based on factors like financial health, market position, and future prospects. Justify the rating with a comprehensive analysis, considering both strengths and weaknesses.

Resources & Disclaimers

Data Sources: List the websites and resources used to gather information for this analysis. Disclaimer: Include a disclaimer clarifying that this analysis is for informational purposes only and should not be considered financial advice.

Please note that the specific details of this analysis, such as financial data, market share percentages, and expense ratios, may vary and require updating as new information becomes available.