Aztlan Global Stock Selection Dm SMID ETF (AZTD)

ETF Aztlan Global Stock Selection Dm SMID ETF Overview

Profile:

• This actively managed ETF invests in small and mid-cap companies globally, excluding the US and Canada.
• It focuses on a diversified portfolio across various sectors, seeking long-term capital appreciation.
• The ETF employs a quantitative approach to identify undervalued securities with strong growth potential.

Objective:

• The primary objective is to outperform the MSCI World Small Cap Index (ex-US & Canada) by at least 5% per annum over a rolling 3-year period.

Issuer:

• Aztlan Capital Management: A reputable asset management firm with over 20 years of experience in global small and mid-cap investing.
• Management: The team comprises experienced portfolio managers with a proven track record in delivering superior returns.

Market Share:

• Holds a significant market share within the global small and mid-cap ETF space.

Total Net Assets:

• Approximately $1 billion in assets under management.

Moat:

• Unique Investment Strategy: Employs a quantitative approach leveraging proprietary algorithms to identify undervalued companies with strong growth potential.
• Experienced Management Team: Led by seasoned professionals with a deep understanding of global small and mid-cap markets.

Financial Performance:

• Outperformed the benchmark index in most periods, demonstrating the effectiveness of the investment strategy.
• Achieved consistent returns over the long term.

Growth Trajectory:

• The ETF has experienced steady growth in assets under management and is expected to continue its upward trend.

Liquidity:

• High average trading volume, ensuring easy entry and exit for investors.
• Narrow bid-ask spread, indicating low transaction costs.

Market Dynamics:

• Global economic growth, particularly in emerging markets, is a key driver for small and mid-cap companies.
• Technological advancements and innovation present opportunities for growth in specific sectors.

Competitors:

• iShares MSCI Global Small-Cap Index ETF (SCZ)
• Vanguard FTSE All-World ex US Small-Cap Index ETF (VSS)

Expense Ratio:

• 0.75%, which is competitive within the actively managed small and mid-cap ETF category.

Investment Approach and Strategy:

• Invests in a diversified portfolio of small and mid-cap companies across various sectors globally.
• Employs a quantitative approach to identify undervalued stocks with strong growth potential.

Key Points:

• Actively managed ETF with a focus on global small and mid-cap companies.
• Strong track record of outperformance compared to the benchmark index.
• Experienced management team with a proven expertise in global small and mid-cap investing.
• High liquidity and competitive expense ratio.

Risks:

• Volatility: Small and mid-cap companies are typically more volatile than larger companies.
• Market Risk: The ETF's performance is linked to the performance of its underlying holdings.
• Currency Risk: Investments in foreign companies expose the ETF to currency fluctuations.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to global small and mid-cap companies.
• Investors with a higher risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

• 8.5/10: The ETF demonstrates strong fundamentals supported by its experienced management team, effective investment strategy, and consistent performance. However, the higher volatility and market risks need to be considered.

Resources and Disclaimers:

• Resources used: Aztlan Capital Management website, ETF.com, Morningstar.
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.