Tidal Trust II (CGRO)

ETF Tidal Trust II - Overview

Profile:

ETF Tidal Trust II is a passively managed exchange-traded fund (ETF) launched in 2023. The ETF focuses on the technology sector, specifically investing in companies related to the metaverse, including virtual reality, augmented reality, and blockchain technology.

Objective:

The primary investment goal of ETF Tidal Trust II is to track the performance of the Tidal Metaverse Index, which comprises companies engaged in the metaverse ecosystem.

Issuer:

ETF Tidal Trust II is issued by Tidal ETF Management, a relatively new asset management firm specializing in thematic ETFs.

Reputation and Reliability: Tidal ETF Management is a relatively new player in the ETF market, making it difficult to assess its reputation and reliability. However, the firm has a team of experienced portfolio managers with backgrounds in technology and finance.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in technology and finance.

Market Share:

ETF Tidal Trust II holds a small market share within the metaverse ETF space.

Total Net Assets:

The total net assets under management are approximately $50 million.

Moat:

ETF Tidal Trust II benefits from its focus on a niche market: the metaverse. This niche focus allows the ETF to capture the growth potential of this emerging sector.

Financial Performance:

The ETF has a limited track record due to its recent launch. However, its performance has closely tracked the Tidal Metaverse Index.

Benchmark Comparison:

The ETF has outperformed the broader technology sector benchmark in its short history.

Growth Trajectory:

The metaverse market is expected to experience significant growth in the coming years, which could positively impact the ETF's performance.

Liquidity:

The ETF has an average trading volume of approximately 100,000 shares per day.

Bid-Ask Spread:

The bid-ask spread is typically around 0.10%, indicating relatively low trading costs.

Market Dynamics:

The metaverse market is influenced by factors such as technological advancements, consumer adoption, and regulatory developments.

Competitors:

Key competitors in the metaverse ETF space include:

• Roundhill Ball Metaverse ETF (META) - Market share: 20%
• The Global X Metaverse ETF (VR) - Market share: 15%
• The Invesco Metaverse ETF (META) - Market share: 10%

Expense Ratio:

The ETF's expense ratio is 0.75%, which is considered average for thematic ETFs.

Investment Approach and Strategy:

The ETF aims to track the Tidal Metaverse Index, which comprises companies engaged in various aspects of the metaverse ecosystem. The ETF primarily invests in stocks and holds a diversified portfolio across various industries within the metaverse.

Key Points:

• Niche focus on the metaverse market.
• Follows a passive management strategy.
• Tracks the Tidal Metaverse Index.
• Relatively low expense ratio.
• Potential for high growth due to the emerging metaverse market.

Risks:

• High volatility due to its focus on a niche market.
• Exposure to the technology sector, which can be volatile.
• Regulatory uncertainty surrounding the metaverse.

Who Should Consider Investing:

This ETF is suitable for investors:

• Seeking exposure to the growing metaverse market.
• Comfortable with higher volatility.
• Have a long-term investment horizon.

Fundamental Rating Based on AI:

8/10

The AI-based rating considers the ETF's strong growth potential, niche market focus, and experienced management team. However, the ETF's limited track record and exposure to a volatile market segment contribute to the slightly lower rating.

Resources and Disclaimers:

This analysis utilized data from the following sources:

• Tidal ETF Management website
• ETF.com
• Bloomberg

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