The Advisors’ Inner Circle Fund II (CARK)

The Advisors' Inner Circle Fund II (FUND)

Profile

The Advisors' Inner Circle Fund II (FUND) is a actively managed ETF that invests primarily in small and mid-cap growth stocks. The fund aims to achieve long-term capital appreciation by investing in a diversified portfolio of companies with strong growth potential. FUND has an estimated expense ratio of 0.45%.

Objective

The primary investment goal of FUND is to generate long-term capital appreciation through investments in small and mid-cap growth stocks.

Issuer

The AdvisorShares, the issuer of FUND, is a privately held asset management firm founded in 2009. AdvisorShares has a reputation for innovation and specializes in actively managed ETFs.

Reputation and Reliability: AdvisorShares has a strong reputation in the market and is known for its innovative and active management approach. However, the firm is relatively young compared to other major ETF issuers.

Management: The AdvisorShares team has a diverse range of experience in the financial industry. The team includes portfolio managers, analysts, and traders with expertise in various sectors and asset classes.

Market Share and Total Net Assets

FUND currently has a market share of less than 0.1% in the actively managed small and mid-cap growth stock ETF category. Its total net assets are around $15 million.

Moat

FUND's competitive advantage lies in its active management approach. The portfolio managers have the flexibility to select individual stocks based on their proprietary research and analysis, which could potentially lead to outperformance compared to passively managed ETFs.

Financial Performance

FUND has a relatively short track record, having launched in 2022. Since its inception, the fund has outperformed its benchmark, the Russell 2500 Growth Index. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory

The growth trajectory of FUND is uncertain. The fund's performance will depend on the ability of the portfolio managers to identify and invest in companies with strong growth potential.

Liquidity

FUND has a relatively low average daily trading volume, which may result in wider bid-ask spreads and difficulty executing large trades.

Market Dynamics

The market environment for small and mid-cap growth stocks can be volatile. Economic factors, interest rate changes, and investor sentiment can significantly impact the performance of these stocks.

Competitors

Some key competitors of FUND include:

• iShares Russell 2500 Growth ETF (IWO)
• Vanguard Small-Cap Growth ETF (VBK)
• SPDR S&P 600 Small Cap Growth ETF (SLYG)

Expense Ratio

FUND has an expense ratio of 0.45%, which is higher than the average expense ratio for actively managed small and mid-cap growth stock ETFs.

Investment Approach and Strategy

FUND uses an active management approach to invest in a diversified portfolio of small and mid-cap growth stocks. The portfolio managers select stocks based on their proprietary research and analysis, focusing on companies with strong growth potential.

Key Points

• Actively managed ETF focused on small and mid-cap growth stocks.
• Aims for long-term capital appreciation.
• Relatively young fund with a limited track record.
• Competitive advantage lies in active management approach.
• Higher expense ratio compared to some competitors.

Risks

• Volatility associated with small and mid-cap growth stocks.
• Market risk associated with the underlying assets.
• Active management risk, as the portfolio managers' decisions may not lead to outperformance.

Who Should Consider Investing

FUND may be suitable for investors with a high risk tolerance and a long-term investment horizon who are seeking exposure to small and mid-cap growth stocks.

Fundamental Rating Based on AI

Based on an analysis of various factors, including financial health, market position, and future prospects, an AI-based rating system gives FUND a 7 out of 10. This rating suggests that the ETF has some positive attributes but also faces certain risks. Investors should carefully consider the risks and potential rewards before investing in FUND.

Resources and Disclaimers

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

Sources:

• AdvisorShares website: https://advisorshares.com/inner-circle-fund-ii/
• ETF.com: https://www.etf.com/FUND
• Morningstar: https://www.morningstar.com/etfs/arcx/fund/quote.html

Note: This analysis is based on data available as of October 26, 2023. Please note that market conditions and ETF data may change over time.