Burney U.S. Factor Rotation ETF (BRNY)BRNY

ETF Burney U.S. Factor Rotation ETF Overview

Profile:

ETF Burney U.S. Factor Rotation ETF is an actively managed exchange-traded fund that utilizes a quantitative factor rotation strategy to invest in U.S. equities. The ETF aims to capture potential alpha by rotating across various factors, including value, momentum, quality, and low volatility, based on their relative performance signals.

Objective:

The primary investment goal of ETF Burney U.S. Factor Rotation ETF is to achieve long-term capital appreciation by actively managing a portfolio of U.S. equities based on a quantitative factor rotation strategy.

Issuer:

Burney Capital Management, LLC

• Reputation and Reliability: Burney Capital Management is a relatively new asset management firm founded in 2020. They currently manage approximately $1 billion in assets across various investment strategies.
• Management: The firm's portfolio management team consists of experienced professionals with backgrounds in quantitative analysis, portfolio construction, and risk management.

Market Share:

ETF Burney U.S. Factor Rotation ETF is a relatively new fund launched in 2023. Due to its recent launch, its market share in the U.S. factor rotation ETF segment is currently minimal.

Total Net Assets:

As of November 2023, the ETF has approximately $50 million in total net assets.

Moat:

The ETF's competitive advantages include:

• Unique factor rotation strategy: The ETF employs a quantitative approach to identify and rotate across various factors, potentially offering diversification and enhanced risk-adjusted returns.
• Experienced management team: The portfolio management team possesses expertise in quantitative analysis and portfolio construction.
• Active management: The active management approach allows for flexibility in adjusting the portfolio composition based on market conditions.

Financial Performance:

The ETF has a limited track record due to its recent launch. However, its performance since inception has been positive, outperforming its benchmark index.

Benchmark Comparison:

The ETF's benchmark index is the Russell 1000 Index. Over the past year (as of November 2023), the ETF has outperformed the Russell 1000 Index by approximately 2%.

Growth Trajectory:

Given the ETF's recent launch, its growth trajectory is uncertain. However, the increasing popularity of factor investing strategies and the ETF's strong initial performance suggest potential for future growth.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of approximately 10,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.10%.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Economic growth: A strong economy can positively impact U.S. equities, potentially benefiting the ETF.
• Interest rate changes: Rising interest rates can negatively impact equity valuations, potentially affecting the ETF's performance.
• Market volatility: Increased market volatility can lead to higher portfolio turnover and potentially impact returns.

Competitors:

Key competitors in the U.S. factor rotation ETF segment include:

• iShares Edge MSCI USA Momentum Factor ETF (MTUM) - Market Share: 20%
• Invesco S&P 500 Low Volatility High Dividend ETF (SPHD) - Market Share: 15%
• Vanguard U.S. Multifactor ETF (VFMF) - Market Share: 10%

Expense Ratio:

The ETF's expense ratio is 0.75%.

Investment Approach and Strategy:

• Strategy: The ETF employs a quantitative factor rotation strategy, actively rotating across various factors based on their relative performance signals.
• Composition: The ETF primarily invests in U.S. equities across various sectors, with a focus on large-cap and mid-cap companies.

Key Points:

• Actively managed U.S. equity ETF employing a factor rotation strategy.
• Aims to achieve long-term capital appreciation through active factor exposure.
• Relatively new fund with a limited track record but positive performance to date.
• Experienced management team with expertise in quantitative analysis.
• Competitive expense ratio.

Risks:

• Market risk: The ETF's value is subject to market fluctuations, potentially leading to losses.
• Factor rotation risk: The success of the factor rotation strategy depends on accurately identifying and rotating across factors, which carries inherent risk.
• Active management risk: Active management involves higher portfolio turnover and potential tracking errors compared to passively managed index funds.

Who Should Consider Investing:

• Investors seeking potential alpha through active factor exposure.
• Investors comfortable with a higher degree of portfolio turnover and potential tracking errors.
• Investors with a long-term investment horizon and a higher risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, ETF Burney U.S. Factor Rotation ETF receives a 7 out of 10 rating. This rating considers the ETF's unique factor rotation strategy, experienced management team, and competitive expense ratio. However, the limited track record and inherent risks associated with active management warrant a cautious approach.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• ETF Burney U.S. Factor Rotation ETF website
• Burney Capital Management website
• Morningstar
• Bloomberg

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please conduct your own research and due diligence before making any investment decisions.