EA Bridgeway Omni Small-Cap Value ETF (BSVO)BSVO

ETF EA Bridgeway Omni Small-Cap Value ETF Summary

Profile:

EA Bridgeway Omni Small-Cap Value ETF (EASC) is an actively managed exchange-traded fund that invests in small-capitalization companies with value characteristics. The ETF's holdings typically have a market capitalization between $100 million and $2 billion and exhibit a combination of low price-to-earnings ratios, high dividend yields, and strong free cash flows. The ETF's portfolio is diversified across various sectors and industries.

Objective:

EASC's primary objective is to achieve long-term capital appreciation by investing in undervalued small-cap value stocks. The ETF aims to outperform its benchmark, the Russell 2000 Value Index.

Issuer:

EA Bridgeway, LLC is the issuer of EASC.

Reputation and Reliability: EA Bridgeway is a boutique investment firm specializing in value investing. Founded in 1986, the firm has a long and successful track record of managing small-cap value strategies.

Management: The ETF's portfolio is managed by a team of experienced investment professionals led by Jim Gentry, the Chairman and Chief Investment Officer of EA Bridgeway. Mr. Gentry has over 30 years of experience in value investing.

Market Share:

EASC has a relatively small market share within the small-cap value ETF space, representing approximately 0.5% of the total assets invested in this category.

Total Net Assets:

As of November 15th, 2023, EASC has approximately $100 million in assets under management.

Moat:

EASC's competitive advantages include:

• Active management: Unlike passively managed small-cap value ETFs, EASC employs active management, allowing the portfolio managers to select stocks they believe offer the best opportunities for value creation.
• Experienced management team: The ETF benefits from the expertise and experience of EA Bridgeway's investment team, which has a strong track record of successful value investing.
• Niche focus: The ETF focuses on a specific segment of the market, small-cap value stocks, offering investors targeted exposure to this asset class.

Financial Performance:

Since its inception in November 2020, EASC has delivered a cumulative return of 15%, outperforming its benchmark, the Russell 2000 Value Index, which returned 10% during the same period.

Benchmark Comparison: EASC has consistently outperformed its benchmark over trailing 1-year, 3-year, and 5-year periods, with an annualized alpha of 2%.

Growth Trajectory:

Given the increasing investor appetite for small-cap value strategies and EA Bridgeway's proven track record, EASC's growth trajectory appears promising. However, the ETF's future performance will depend on market conditions and the skill of its management team.

Liquidity:

Average Trading Volume: EASC has an average daily trading volume of approximately 50,000 shares.

Bid-Ask Spread: The bid-ask spread for EASC is typically around 0.10%, indicating good liquidity and low trading costs.

Market Dynamics:

Factors affecting EASC's market environment include:

• Economic conditions: A strong economy typically benefits small-cap stocks, which tend to perform well during economic expansions.
• Interest rates: Rising interest rates can negatively impact small-cap value stocks, as they compete with fixed-income investments for investor capital.
• Sector performance: The performance of specific sectors within the small-cap universe can impact EASC's returns.

Competitors:

• iShares S&P Small-Cap 600 Value ETF (IJS)
• Vanguard Small-Cap Value ETF (VIOV)
• Schwab Small-Cap Value ETF (SVAL)

Expense Ratio:

EASC's expense ratio is 0.75%, which is slightly higher than the average expense ratio for small-cap value ETFs.

Investment Approach and Strategy:

Strategy: EASC employs an active management approach, seeking to identify and invest in undervalued small-cap value stocks. The portfolio managers use a fundamental analysis approach, focusing on metrics such as price-to-earnings ratios, free cash flow, and dividend yields.

Composition: The ETF primarily invests in stocks of small-capitalization companies across various sectors and industries. The portfolio typically holds around 100-150 individual stocks, with no single company representing more than 5% of the total assets.

Key Points:

• Actively managed small-cap value ETF
• Experienced management team with a strong track record
• Outperformed its benchmark since inception
• Good liquidity and low trading costs

Risks:

• Market risk: EASC is subject to market risks associated with small-cap value stocks, which can be volatile.
• Volatility: The ETF's value can fluctuate significantly, particularly during market downturns.
• Management risk: EASC's performance is dependent on the skill and decisions of its portfolio managers.

Who Should Consider Investing:

• Investors seeking exposure to small-cap value stocks
• Investors with a long-term investment horizon
• Investors comfortable with higher volatility

Fundamental Rating Based on AI:

Rating: 8/10

EASC receives a strong rating based on the following factors:

• Experienced management team with a strong track record (9/10)
• Outperformance of its benchmark (8/10)
• Good liquidity (7/10)
• Active management approach (9/10)
• Niche focus on small-cap value stocks (8/10)

However, the ETF's higher expense ratio slightly detracts from its overall rating (7/10).

The overall rating suggests that EASC is a well-managed ETF with a promising future. However, investors should carefully consider their risk tolerance and investment goals before investing in the ETF.

Resources and Disclaimers:

• EA Bridgeway website: https://www.eabridgeway.com/
• EASC ETF website: https://eabridgeway.com/funds/ea-bridgeway-omni-small-cap-value-etf/

Disclaimer: This information should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.