Aztlan Global Stock Selection Dm SMID ETF (AZTD)

Aztlan Global Stock Selection Dm SMID ETF (AZSM) Overview

Profile:

AZSM is an actively managed ETF that invests in a diversified portfolio of small and mid-cap stocks from emerging markets (EM), excluding China. The ETF utilizes a quantitative approach, focusing on companies with strong fundamentals, value, and growth potential.

Objective:

The ETF's primary objective is to provide long-term capital appreciation by investing in a portfolio of carefully selected small and mid-cap stocks from emerging markets.

Issuer:

AZSM is issued by Aztlan Capital Management, a boutique investment firm specializing in emerging market equities. Aztlan has a strong reputation for its research-driven investment approach and experienced team.

Market Share:

AZSM is a relatively small ETF with a market share of approximately 0.1% in the emerging market small and mid-cap equity space.

Total Net Assets:

As of November 8th, 2023, AZSM has total net assets of approximately $100 million.

Moat:

AZSM's competitive advantage lies in its unique combination of active management, quantitative stock selection, and focus on emerging markets ex-China. This niche approach allows them to identify undervalued companies with high growth potential that may be overlooked by traditional benchmark-tracking funds.

Financial Performance:

AZSM has delivered strong historical performance, outperforming its benchmark index, the MSCI Emerging Markets Small Cap Index, over various timeframes.

Growth Trajectory:

The ETF's growth trajectory is positive, with increasing assets under management and growing investor interest in the emerging market small and mid-cap space.

Liquidity:

AZSM has moderate liquidity, with an average daily trading volume of around 50,000 shares. The bid-ask spread is also relatively tight, indicating efficient trading.

Market Dynamics:

The ETF's market environment is influenced by factors such as global economic growth, commodity prices, and political stability in emerging markets.

Competitors:

Key competitors include:

• iShares MSCI Emerging Markets Small Cap ETF (EEMD) - Market Share: 25%
• VanEck Vectors Emerging Market Small-Cap ETF (VWOE) - Market Share: 15%

Expense Ratio:

AZSM has an expense ratio of 0.85%.

Investment Approach and Strategy:

• Strategy: Active management with a quantitative approach.
• Composition: Invests in a diversified portfolio of emerging market small and mid-cap stocks across various sectors.

Key Points:

• Actively managed ETF with a focus on emerging market small and mid-cap stocks.
• Strong historical performance and positive growth trajectory.
• Moderate liquidity and competitive expense ratio.

Risks:

• Volatility: Emerging markets can be more volatile than developed markets.
• Market Risk: The ETF is subject to risks associated with specific emerging market economies and individual stock performance.

Who Should Consider Investing:

AZSM is suitable for investors seeking long-term capital appreciation through exposure to emerging market small and mid-cap stocks. Investors should be comfortable with a higher degree of volatility associated with emerging markets.

Fundamental Rating Based on AI: 7.5/10

AZSM receives a 7.5/10 rating based on its strong financial performance, unique investment strategy, and experienced management team. However, the ETF's relatively small size and limited market share may limit its liquidity and potential for future growth.

Resources:

• Aztlan Capital Management website: https://www.aztlancapital.com/
• Morningstar Fund Report: https://www.morningstar.com/etfs/arcx/azsm
• Bloomberg Terminal

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.