Northern Lights Fund Trust II (BSR)

US ETF Northern Lights Fund Trust II - Summary

Profile:

Northern Lights Fund Trust II (NFTR) is an actively managed exchange-traded fund (ETF) registered in the US. The fund focuses on investing in companies that show potential for long-term growth and value creation through disruptive innovation across various industries. Its current assets are primarily concentrated in the technology sector, with a significant allocation towards emerging markets.

Objective:

NFTR's primary objective is to achieve long-term capital appreciation by investing in a global pool of innovative companies. 

Issuer:

The ETF is issued by Northern Lights Asset Management, a relatively young, but innovative asset management firm based in the US.

Reputation & Reliability:

Northern Lights has established a strong reputation for actively managed thematic investing, particularly within the technology and innovation space. Although the firm is young, its team comprises seasoned professionals with extensive expertise in the industry.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in identifying and analyzing highly innovative companies with long-term growth potential. They conduct rigorous fundamental research and analysis to select companies with disruptive technologies and strong potential for value creation.

Market Share:

NFTR holds a relatively small market share within its actively managed, technology-focused category, indicating stronger potential for growth and expansion.

Total Net Assets:

As of November 2023, NFTR's total net assets under management are approximately $500 million.

Moat:

NFTR's competitive advantages include:

• Active management: Unlike passively managed index-based ETFs, NFTR's active management strategy enables the portfolio managers to identify and invest in companies with high growth potential that may be missed by traditional indexing approaches.
• Focus on innovation: The ETF's specific focus on disruptive innovation across various industries allows it to capitalize on future trends and emerging technologies, potentially generating superior returns.
• Experienced management team: The strong track record and expertise of the management team provide an additional layer of confidence in the fund's investment decisions.

Financial Performance:

Since its inception in November 2022, NFTR has generated positive returns, exceeding the performance of its benchmark index and demonstrating the effectiveness of its active management approach.

Growth Trajectory:

The ETF's focus on themes like disruptive innovation, technology, and emerging markets aligns well with future trends and growth prospects, indicating strong growth potential.

Liquidity:

• Average Trading Volume: NFTR experiences moderate trading volume, which could impact its liquidity in large transactions.
• Bid-Ask Spread: The bid-ask spread is relatively tight, implying low transaction costs.

Market Dynamics:

Factors affecting NFTR's market environment include:

• Technological advancements: Rapid technological innovation influences the performance of companies within NFTR's portfolio.
• Global economic conditions: Macroeconomic factors and global events impact the growth prospects of the companies NFTR invests in.
• Emerging market volatility: As NFTR allocates a significant portion of its assets towards emerging markets, it is exposed to volatility and geopolitical risks associated with these regions.

Competitors:

Key competitors in NFTR's category include:

• ARK Innovation ETF (ARKK) - Market Share: 10%
• iShares Exponential Technologies ETF (XT) - Market Share: 5%
• Global X Robotics & Artificial Intelligence ETF (BOTZ) - Market Share: 3%

Expense Ratio:

NFTR's expense ratio is 0.85%, which is slightly above the average for actively managed thematic ETFs.

Investment approach and strategy:

• Strategy: NFTR employs an active management strategy focusing on identifying and investing in companies that demonstrate disruptive innovation and long-term growth potential across various industries.
• Composition: The ETF primarily holds stocks of global companies with a strong presence in the technology sector, with an increasing allocation towards emerging markets.

Key Points:

• Actively managed ETF focused on disruptive innovation.
• Strong performance track record exceeding benchmark index.
• Experienced management team with expertise in identifying and analyzing innovative companies.
• Exposure to future trends and growth potential through technology and emerging markets focus.
• Moderate liquidity and competitive expense ratio.

Risks:

• Market volatility: NFTR can experience higher volatility due to its focus on innovative and disruptive companies.