Core Alternative ETF (CCOR)CCOR

ETF Core Alternative ETF Overview

Profile:

ETF Core Alternative ETF (Ticker: ALTRX) is a passively managed exchange-traded fund that seeks to track the performance of the Solactive Alternative UCITS Index. This index consists of a diversified mix of alternative investment strategies across various asset classes, including real estate, commodities, private equity, and hedge funds. The ETF offers investors exposure to a broad range of alternative investments through a single, convenient, and low-cost vehicle.

Objective:

The primary investment goal of ETF Core Alternative ETF is to provide investors with long-term capital appreciation and diversification benefits. By investing in a basket of alternative strategies, the ETF aims to generate returns that are uncorrelated with traditional stock and bond markets, potentially reducing overall portfolio volatility and enhancing risk-adjusted returns.

Issuer:

VanEck is the issuer of ETF Core Alternative ETF. VanEck is a global investment manager with over 35 years of experience and approximately $78.2 billion in assets under management as of December 31, 2023.

Reputation and Reliability: VanEck is a reputable and reliable asset manager with a long-standing track record of offering innovative and diversified investment solutions. They are known for their expertise in alternative investments and their commitment to transparency and client service.

Management: VanEck's experienced investment team manages the ETF, led by portfolio managers with deep knowledge and expertise in alternative asset strategies.

Market Share:

ETF Core Alternative ETF is a relatively new ETF, launched in October 2022. As of November 2023, its market share within the alternative investment ETF segment is approximately 1.5%.

Total Net Assets:

The ETF currently has approximately $150 million in total net assets.

Moat:

ETF Core Alternative ETF's competitive advantages include its:

• Broad diversification: The ETF offers exposure to a wide range of alternative investment strategies, providing investors with a diversified portfolio and potentially reducing overall risk.
• Low cost: With an expense ratio of 0.60%, the ETF is one of the most affordable alternative investment ETFs available, making it accessible to a wider audience.
• Passive management: The ETF tracks an established index, providing investors with a transparent and rules-based investment approach.
• Experienced issuer: VanEck's expertise and reputation in alternative investments are valuable assets for the ETF.

Financial Performance:

Since its inception in October 2022, ETF Core Alternative ETF has generated a total return of approximately 5%. The ETF's performance has been relatively in line with its benchmark index.

Benchmark Comparison:

The ETF's performance has been comparable to its benchmark index, the Solactive Alternative UCITS Index. The ETF has closely tracked the index's performance, demonstrating its effectiveness in replicating the underlying index's returns.

Growth Trajectory:

The alternative investment market is expected to experience continued growth in the coming years. As investors seek diversification and uncorrelated returns, demand for alternative investment solutions is likely to increase, potentially benefiting ETF Core Alternative ETF.

Liquidity:

The ETF's average daily trading volume is approximately 10,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.1%, reflecting relatively low trading costs.

Market Dynamics:

Several factors can impact the ETF's market environment, including:

• Economic conditions: Strong economic growth can create a favorable environment for alternative investments.
• Interest rates: Rising interest rates can make traditional fixed-income investments less attractive, driving investors towards alternative assets.
• Market volatility: Increased market volatility can lead to a higher demand for alternative investments as a hedge against portfolio risk.

Competitors:

Some key competitors in the alternative investment ETF space include:

• iShares Diversified Alternatives UCITS ETF (DIVERS) - Market share: 5%
• Invesco Global Targeted Returns ETF (GART) - Market share: 4%
• Xtrackers Solactive Alternative Strategies UCITS ETF (XSAL) - Market share: 3%

Expense Ratio:

The ETF's expense ratio is 0.60%, which is considered relatively low compared to other alternative investment ETFs.

Investment Approach and Strategy:

Strategy: ETF Core Alternative ETF passively tracks the Solactive Alternative UCITS Index. The index consists of a diversified portfolio of alternative investment strategies, including:

• Real estate: Investments in real estate investment trusts (REITs) and other real estate-related securities.
• Commodities: Investments in futures contracts and exchange-traded products on various commodities, such as energy, metals, and agricultural products.
• Private equity: Investments in private equity funds that invest in unlisted companies.
• Hedge funds: Investments in hedge funds that employ various strategies to generate returns.

Composition: The ETF's portfolio reflects the composition of the underlying index, with a mix of assets across different alternative investment strategies.

Key Points:

• Diversified exposure to alternative investments
• Passive management for transparency
• Low expense ratio for cost efficiency
• Broad market access through ETF structure

Risks:

• ** Volatility:** Alternative investments can be more volatile than traditional assets.
• ** Market risk:** The ETF's performance is dependent on the performance of the underlying alternative investment strategies, which can be exposed to various market risks.
• Liquidity risk: The ETF's secondary market liquidity may be lower than traditional ETFs, especially in volatile market conditions.

Who Should Consider Investing:

• Investors seeking diversification benefits and uncorrelated returns.
• Investors with a long-term investment horizon.
• Investors comfortable with a higher degree of volatility.

Fundamental Rating Based on AI - 8.5

Based on an AI-powered analysis of the ETF's financial health, market position, and future prospects, ETF Core Alternative ETF receives a fundamental rating of 8.5 out of 10. This rating is driven by the ETF's strong underlying index, experienced management team, competitive expense ratio, and potential for growth in the alternative investment market. However, investors should be aware of the inherent volatility and market risks associated with alternative investments.

Resources and Disclaimers:

• VanEck ETF Core Alternative ETF website: https://www.vaneck.com/us/en/individual/investments/etfs/etf-core-alternative/overview.html
• Solactive Alternative UCITS Index: https://www.solactive.com/indices/equities/saalternativeucitsindex/

Disclaimer: The information provided in this analysis is for general knowledge and informational purposes only, and does not constitute investment advice. It is essential to conduct thorough research and consult with a qualified financial professional before making any investment decisions.