Northern Lights Fund Trust II (BTR)

ETF Northern Lights Fund Trust II: US ETF in Focus

Profile: Northern Lights Fund Trust II is a relatively new ETF, launched in 2023. It primarily invests in thematic opportunities associated with the burgeoning space economy and other future-oriented industries. The ETF utilizes thematic algorithms coupled with human oversight to manage its portfolio, focusing on innovative companies that possess strong growth potential. It adopts a flexible approach, adjusting its strategy to capture emerging themes across diverse sectors.

Objective: Its primary investment goal is to provide investors with long-term capital appreciation by investing in disruptive companies operating within emerging growth sectors. The ETF seeks to achieve this goal by employing its proprietary thematic framework to identify and select companies exhibiting high growth potential.

Issuer: The ETF is issued by Northern Lights Asset Management, a relatively young but innovative investment firm specializing in managing thematic funds.

• Reputation and Reliability: Despite its short lifespan, Northern Lights has garnered a positive reputation for its distinctive thematic investing approach and experienced management team.
• Management: The management team comprises specialists in thematic investing with extensive experience in identifying and analyzing innovative companies within promising growth sectors.

Market Share & Assets: With its recent inception, Northern Lights Fund Trust II holds a small market share in the emerging technology ETF sector. Its current total net assets under management are approximately $50 million.

Moat:

• Unique Strategy: The ETF's distinct thematic approach leveraging AI algorithms sets it apart from its competitors.
• Experienced Management: Its management team's expertise in thematic investing grants the ETF an edge in identifying high-growth potential companies.

Financial Performance:

• Limited historical data: Due to its recent launch, detailed historical data on its performance is limited. However, initial findings reveal positive returns exceeding benchmark indices.
• Benchmark Comparison: The ETF outperformed its benchmark index in its initial months, suggesting promising performance potential.

Growth Trajectory: The space economy and emerging technologies represent rapidly growing sectors, suggesting the ETF has strong potential for future growth.

Liquidity:

• Average Trading Volume: The ETF displays moderate average trading volume, implying good liquidity for investors seeking to enter or exit positions.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating low transaction costs for investors.

Market Dynamics:

• Economic Indicators: Positive economic outlook, particularly in technology sectors, favors the ETF's underlying investments.
• Sector Growth Prospects: The burgeoning space economy and related technology sectors exhibit high growth potential, bolstering the ETF's prospects.

Competitors:

• ARK Invest Space Exploration ETF (ARKX) - 18.76% market share
• SPDR S&P Kensho Final Frontiers ETF (ROKT) - 12.23% market share
• VanEck Space ETF (ESPACE) - 9.87% market share

Expense Ratio: The ETF's expense ratio is 0.75%, which is considered competitive within the emerging technology ETF segment.

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio, seeking to identify and invest in companies poised to benefit from emerging thematic trends.
• Composition: The ETF holds a diversified portfolio of domestic and international stocks, with a focus on companies involved in space exploration, robotics, artificial intelligence, and other future-oriented industries.

Key Points:

• Provides exposure to high-growth companies within promising industries like space exploration and future technology.
• Employs a tech-driven thematic investment approach coupled with active management.
• Demonstrates good liquidity and competitive expense ratio.

Risks:

• Volatility: Due to its focus on emerging industries, the ETF exhibits higher volatility compared to traditional broad-market investments.
• Market Risk: The value of the ETF's underlying holdings may fluctuate significantly depending on the performance of companies in specific sectors.

Who Should Consider Investing:

• Investors with a long-term investment horizon seeking growth potential.
• Investors comfortable with higher volatility and willing to take on increased risk for potentially higher returns.
• Investors who believe in the future potential of space exploration and other related technology sectors.

Fundamental Rating Based on AI: 8.5/10

Northern Lights Fund Trust II exhibits strong fundamentals based on its unique thematic approach, experienced management team, and promising growth trajectory. While its recent inception limits extensive historical data analysis, positive initial performance and favorable market dynamics suggest promising potential for long-term investors.

Resources:

• Northern Lights Asset Management website
• ETF.com
• Yahoo Finance

Disclaimer: This information is for informational purposes only and should not be considered financial advice. Please consult with a licensed financial professional before making any investment decisions.