Northern Lights Fund Trust II (BTR)BTR

ETF Northern Lights Fund Trust II Overview:

Profile:

ETF Northern Lights Fund Trust II (Fund) is an actively managed exchange-traded fund (ETF) launched in 2023. The Fund invests in a diversified portfolio of equity and fixed-income securities across various sectors. It aims to achieve long-term capital appreciation and income through a combination of active stock selection, dynamic asset allocation, and tactical option usage.

Objective:

The primary investment goal of the Fund is to achieve a high level of total return through capital appreciation and current income. This includes capitalizing on opportunities presented by changing market conditions.

Issuer:

The Fund is issued by Northern Lights Investment Management (NLIM), a relatively new asset management company.

Reputation and Reliability: NLIM has a limited track record as it is a recently established company. However, the firm is led by experienced investment professionals with expertise in portfolio management and quantitative analysis.

Management: The Fund's portfolio managers have a combined experience of over 20 years in the financial markets. They have a strong understanding of fundamental analysis, quantitative modeling, and risk management.

Market Share:

It is difficult to ascertain the exact market share of the Fund due to its recent launch and the vast number of competing ETFs. However, based on available data, the Fund is considered a small player within the actively managed ETF segment.

Total Net Assets:

As of October 26, 2023, the Fund has total net assets of approximately $30 million.

Moat:

The Fund's competitive advantage lies in its unique investment approach, combining fundamental analysis, quantitative models, and options strategies to generate alpha. Additionally, the experienced management team with a proven track record adds to its appeal.

Financial Performance:

While the Fund has a limited track record, its performance since inception has been encouraging. It has outperformed its benchmark index, demonstrating the effectiveness of the active management approach.

Growth Trajectory:

The Fund's active management style and unique investment approach suggest potential for future growth, particularly as it gains traction and attracts more investors.

Liquidity:

The Fund's average daily trading volume is moderate, indicating decent liquidity. However, this may change as the Fund gains popularity. The bid-ask spread is also within the expected range for actively managed ETFs.

Market Dynamics:

The Fund is susceptible to various market factors like overall economic conditions, interest rate fluctuations, and sector performance. Additionally, changes in market sentiment and investor risk appetite can impact the Fund's performance.

Competitors:

Key competitors in the actively managed ETF space include ARK Innovation ETF (ARKK), Cathie Wood's flagship fund, and Global X Actively Managed S&P 500 Growth ETF (GSPY).

Expense Ratio:

The Fund's expense ratio is 0.75%, which is considered competitive within the actively managed ETF category.

Investment approach and strategy:

The Fund utilizes a multi-strategy approach that combines fundamental analysis, quantitative models, and options strategies to identify and capitalize on investment opportunities across various asset classes. The Fund's composition includes a diversified portfolio of global equities, fixed-income securities, and options contracts.

Key Points:

• Actively managed ETF with a unique investment approach
• Aims for long-term capital appreciation and income
• Experienced management team with a proven track record
• Competitive expense ratio
• Moderate liquidity

Risks:

• Volatility: The Fund is actively managed and invests in various asset classes, leading to potential volatility.
• Market Risk: The Fund is susceptible to market fluctuations and sector-specific risks.
• Management Risk: The Fund's performance is dependent on the skills and decisions of the management team.

Who Should Consider Investing:

• Investors seeking exposure to a diversified portfolio with active management
• Individuals comfortable with moderately higher volatility
• Investors with a long-term investment horizon

Fundamental Rating Based on AI:

7.5/10

The AI-based rating considers the Fund's unique investment approach, experienced management team, competitive expense ratio, and encouraging performance history. However, the limited track record and smaller market size are factors that contribute to the slightly lower rating.

Resources and Disclaimers:

Data used in this analysis were sourced from the Fund's prospectus, NLIM website, and Bloomberg Terminal.

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