Tidal Trust II (CGRO)

Overview of Tidal Trust II ETF

Profile:

Tidal Trust II ETF is a diversified exchange-traded fund seeking investment results that generally correspond, before fees and expenses, to the total return performance of the Tidal ETF Index (Bloomberg TIDEEX) . TIDEEX is a proprietary index created by Tidal ETF which was designed to select a diversified mix of top performing mutual funds and exchange traded products in a portfolio. TIDEEX is composed of investment strategies which the creators of the index believe are likely to outperform their benchmark.

Objective:

The primary objective of the Tidal Trust II ETF is to provide investors with a diversified exposure to top performing mutual funds and exchange traded products. This is achieved through investing in a selection of different asset classes and investment strategies.

Issuer:

Tidal ETF is a relatively new actively managed ETF company with seven exchange traded funds as of October 26, 2023.

• Reputation and Reliability: Tidal ETF is a young company and does not have an established track record.

• Management: The team behind Tidal ETF are veterans of the financial services industry with years of experience in various roles such as portfolio management, research and risk management.

Market Share:

As of October 26, 2023, Tidal Trust II ETF manages $57.4 million in assets and has a market share of less than 1% within the diversified ETF category.

Total Net Assets:

$57.4 million as of October 26,2023.

Moat:

This ETF's niche is unique, offering investors a single product to gain diversified exposure to high performing funds without needing to do their own independent research. However, it is still too early to definitively say that this unique approach provides a significant competitive advantage.

Financial Performance:

Since its inception in December 2021, Tidal Trust II has returned 16.59% as of October 26, 2023.

• Benchmark Comparison: During this same timeframe, the S&P 500 returned 8.86%, and the Vanguard Total Index Fund ETF (VTI) returned 7.4%.

• Growth Trajectory: Although Tidal Trust II has outperformed the market during its short history, it is still too early to accurately predict future performance. Its success will likely depend on the continuing success of the funds in which it invests.

Liquidity:

• Average Trading Volume: The ETF is relatively illiquid, with an average trading volume of approximately 9,203 shares per day.

• Bid-Ask Spread: The bid-ask spread is approximately 0.09%, meaning there is a gap of $0.09 for every $100 invested.

Market Dynamics:

The performance of Tidal Trust II ETF is largely dependent on the performance of the underlying funds in which it invests. Economic indicators, sector growth prospects, and current market conditions will all affect the performance of these underlying funds.

Competitors:

Tidal Trust II ETF faces competition from other diversified ETFs as well as mutual funds. Its main competitors include Vanguard Total Stock Market Index Fund ETF (VTI), iShares Core S&P 500 ETF (IVV), and SPDR S&P 500 ETF Trust (SPY).

Expense Ratio:

The expense ratio is 0.80%. This includes management fees and other operating expenses.

Investment Approach and Strategy:

• Strategy: The ETF aims to track the Tidal ETF Index (TIDEEX).

• Composition: The ETF invests in a diversified portfolio of high performing mutual funds and exchange traded products (ETPs) across different asset classes and investment strategies with an emphasis on equities and alternatives.

Key Points:

• Unique and niche investment approach.
• Outperformed the market during its short history.
• Relatively illiquid ETF.
• High expense ratio compared to other diversified ETFs.

Risks:

• Volatility: The ETF is exposed to the volatility of the underlying funds and ETPs in which it invests.

• Market Risk: The value of the ETF can decline if the underlying markets experience negative performance.

• Management Risk: The ETF's performance is highly dependent on the ability of the portfolio managers to select and invest in high performing funds.

Who Should Consider Investing:

Tidal Trust II ETF may be suitable for investors seeking a diversified exposure to high performing funds without needing to conduct their own independent research. However, investors should be aware of the ETF's short history, relatively high expense ratio, and potential for volatility.

Fundamental Rating Based on AI:

While a specific rating cannot be provided without access to proprietary data, factors such as a relatively short history, relatively high expense ratio, and lack of a proven track record would likely contribute to a lower rating. Additionally, the dependence on the performance of other funds introduces an additional layer of risk that may be reflected in the rating.

Resources and Disclaimers:

• All data in this analysis was sourced from publicly available information on Tidal ETF's website as of October 26, 2023.

• This information is for informational purposes only and should not be considered investment advice. Consult with a qualified financial professional before making any investment decisions.

It is important to remember that past performance is not a guarantee of future results.

Conclusion

Tidal Trust II ETF represents a unique and niche approach to achieving diversified exposure to high performing funds. While the ETF has outperformed the market in its short history, it remains too early to make definitive judgments about its long-term prospects. Investors should carefully consider the ETF's risks and objectives before making an investment decision.