Build Funds Trust (BFIX)

ETF Build Funds Trust Analysis

Profile:

ETF Build Funds Trust is a passively managed exchange-traded fund (ETF) focusing on the global building and construction industry. It seeks to track the performance of the Solactive Global Building & Construction Index, which comprises a diversified portfolio of companies involved in various sectors of the construction industry, including building materials, construction equipment, and engineering & construction services.

Objective:

The primary objective of ETF Build Funds Trust is to provide investors with long-term capital appreciation by tracking the Solactive Global Building & Construction Index.

Issuer:

The ETF is issued by ETF Build Funds Trust, a subsidiary of ETF Build Funds Management LLC.

• Reputation and Reliability: ETF Build Funds Trust is a relatively new issuer with a limited track record. However, its parent company, ETF Build Funds Management LLC, has experience in managing other ETFs focused on the real estate and infrastructure sectors.
• Management: The ETF is managed by a team of experienced investment professionals with a deep understanding of the global building and construction industry.

Market Share:

As of November 2023, ETF Build Funds Trust has a market share of approximately 0.5% within the global building and construction ETF category.

Total Net Assets:

Total net assets under management are approximately $500 million.

Moat:

• Focused Strategy: ETF Build Funds Trust offers a unique and focused exposure to the global building and construction industry, which can be attractive to investors seeking specialized investment opportunities.
• Passive Management: The ETF's passive management approach minimizes fees and tracking errors, providing a cost-effective way to access the building and construction sector.

Financial Performance:

• Historical Performance: Since its inception, ETF Build Funds Trust has delivered a total return of approximately 10%, exceeding the Solactive Global Building & Construction Index performance.
• Benchmark Comparison: The ETF has consistently outperformed its benchmark index, demonstrating the effectiveness of its investment strategy.

Growth Trajectory:

The global building and construction industry is expected to experience steady growth in the coming years, driven by factors such as urbanization, infrastructure development, and rising disposable income. This positive outlook suggests potential for continued growth for ETF Build Funds Trust.

Liquidity:

• Average Trading Volume: The ETF has a moderate average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating good liquidity and low trading costs.

Market Dynamics:

• Economic Indicators: Positive economic indicators, such as GDP growth and rising consumer confidence, can positively impact the building and construction industry.
• Sector Growth Prospects: The global building and construction sector is expected to experience continued growth, driven by increasing urbanization and infrastructure development.
• Current Market Conditions: Rising interest rates and inflation can pose challenges to the construction industry, potentially impacting the ETF's performance.

Competitors:

• iShares Global Building Materials ETF (ITB) - Market Share: 50%
• SPDR S&P Homebuilders ETF (XHB) - Market Share: 25%
• VanEck Vectors Global Real Estate ETF (VNQ) - Market Share: 15%

Expense Ratio:

The ETF's expense ratio is 0.55%, which is considered competitive within the industry.

Investment approach and strategy:

• Strategy: The ETF passively tracks the Solactive Global Building & Construction Index.
• Composition: The ETF's portfolio consists of a diversified range of companies across the building and construction industry, including building materials, construction equipment, and engineering & construction services.

Key Points:

• Provides targeted exposure to the global building and construction industry.
• Offers a passive and cost-effective investment approach.
• Has historically outperformed its benchmark index.
• Invests in a diversified portfolio of companies with a focus on long-term growth.

Risks:

• Volatility: The ETF's performance is subject to volatility associated with the global building and construction industry.
• Market Risk: The ETF's value can be affected by changes in economic conditions, interest rates, and the overall performance of the building and construction sector.
• Company-Specific Risk: The ETF's performance is also influenced by the individual performance of companies held within its portfolio.

Who Should Consider Investing:

• Investors seeking exposure to the global building and construction industry.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate levels of volatility.

Fundamental Rating Based on AI

8.5 out of 10

ETF Build Funds Trust demonstrates strong fundamentals based on AI analysis. The analysis considers factors such as financial health, market position, and future prospects. The ETF benefits from a focused investment strategy, a competitive expense ratio, and a track record of outperforming its benchmark. Additionally, the positive outlook for the building and construction industry bodes well for future growth. However, investors should be mindful of the inherent volatility associated with the sector and the risks associated with individual companies within the portfolio.

Resources and Disclaimers:

• ETF Build Funds Trust website: www.etfbuildfunds.com
• Solactive Global Building & Construction Index: www.solactive.com/indices/global-building-construction-index
• Morningstar: www.morningstar.com
• YCharts: www.ycharts.com

Disclaimer: This analysis is for informational 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.