AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL)

ETF AGFiQ U.S. Market Neutral Anti-Beta Fund:

Profile:

The AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL) is an actively managed exchange-traded fund (ETF) that seeks to provide capital appreciation through a combination of long and short positions in U.S. equities, with a focus on generating returns that are uncorrelated to the overall market. The ETF aims to achieve its objective by employing a quantitative, model-driven investment approach that identifies and invests in stocks with low beta (volatility) and shorting stocks with high beta.

Objective:

The primary investment goal of BTAL is to generate positive returns regardless of market direction, while minimizing volatility and correlation to the broader market. This makes it suitable for investors seeking diversification and downside protection in their portfolio.

Issuer:

AGFiQ is a global asset management firm with over $100 billion in assets under management. The firm has a strong reputation and track record, and is known for its innovative investment solutions.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and active portfolio management. The team utilizes a proprietary quantitative model to identify low-beta stocks and construct the ETF's portfolio.

Market Share:

BTAL has a relatively small market share in the actively managed ETF space, with approximately $500 million in assets under management. However, it has experienced strong growth in recent years, indicating increasing investor interest in its unique investment strategy.

Total Net Assets:

As of November 2023, BTAL has approximately $500 million in total net assets.

Moat:

BTAL's competitive advantages include its unique anti-beta strategy, its experienced management team, and its access to AGFiQ's proprietary research and technology.

Financial Performance:

BTAL has historically delivered positive returns with lower volatility compared to the broader market.

Benchmark Comparison:

BTAL has outperformed its benchmark, the S&P 500 Index, over the past 3 and 5 years, especially during periods of market volatility.

Growth Trajectory:

BTAL has experienced strong growth in recent years, driven by increasing investor demand for alternative investment strategies.

Liquidity:

BTAL has a moderate average daily trading volume, ensuring adequate liquidity for investors. The bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

Market dynamics affecting BTAL include overall market volatility, interest rate trends, and sector performance.

Competitors:

Key competitors include:

• AXS Short S&P 500 ETF (SH) - 1.7%
• ProShares Short S&P 500 ETF (SH) - 1.3%
• Direxion Daily S&P 500 Bear 1X Shares (SPDN) - 0.8%

Expense Ratio:

The expense ratio for BTAL is 0.75%.

Investment Approach and Strategy:

BTAL employs a quantitative model to identify and invest in low-beta stocks and short high-beta stocks. The ETF holds a diversified portfolio of approximately 100-150 stocks across various sectors.

Key Points:

• Seeks market-neutral returns with low volatility
• Actively managed, quantitative approach
• Experienced portfolio management team
• Outperformance vs. benchmark during market volatility
• Moderate liquidity and tight bid-ask spread

Risks:

• Market risk associated with underlying assets
• Potential for tracking error due to active management
• Volatility risk of individual stock holdings
• Shorting risk, including potential losses exceeding initial investment

Who Should Consider Investing:

• Investors seeking diversification and downside protection
• Investors comfortable with active management and volatility
• Investors with a long-term investment horizon

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects, BTAL receives a 7 out of 10 rating. The AI model identifies strengths in its unique strategy, experienced management, and outperformance during market volatility. However, the relatively small market share and higher expense ratio compared to some competitors are considered weaknesses.

Resources and Disclaimers:

• AGFiQ US Market Neutral Anti-Beta Fund website: https://agfiq.com/us/en/etfs/btal/overview
• Bloomberg Terminal: BTAL US Equity
• Yahoo Finance: https://finance.yahoo.com/quote/BTAL/
• Morningstar: https://www.morningstar.com/etfs/arcx/btal/quote

Disclaimer: This information is for general knowledge and educational purposes only, and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.