Two Roads Shared Trust (CGV)

ETF Two Roads Shared Trust Overview

Profile:

Two Roads Shared Trust (Ticker: TWO) is a thematic ETF focused on the digital transformation of the financial services industry. It primarily invests in companies that develop and use innovative technologies like blockchain, artificial intelligence, and big data to disrupt traditional financial models. The strategy emphasizes long-term growth potential over short-term gains.

Objective:

The primary investment goal of TWO is to achieve long-term capital appreciation by investing in companies that are driving the digital transformation of financial services.

Issuer:

Two Roads Shared Trust is managed by Two Roads Asset Management, a subsidiary of Invesco.

Reputation and Reliability:

Invesco is a global asset management firm with a strong reputation and long track record in the industry, managing over $1.4 trillion in assets.

Management:

The ETF is managed by a team of experienced investment professionals with expertise in technology and financial services.

Market Share:

Two Roads Shared Trust holds a relatively small market share within its sector.

Total Net Assets:

As of October 26, 2023, the total net assets under management for TWO are approximately $246.3 million.

Moat:

The ETF's competitive advantage lies in its unique focus on the digital transformation of financial services. This niche market offers significant growth potential as traditional financial institutions increasingly adopt new technologies.

Financial Performance:

Since its inception in 2021, TWO has shown promising performance. However, it is important to remember that past performance is not indicative of future results.

Benchmark Comparison:

The ETF has outperformed its benchmark index, the S&P 500, since its launch.

Growth Trajectory:

The digital transformation of the financial services industry is expected to continue for many years, presenting a significant growth opportunity for TWO.

Liquidity:

The ETF has a relatively low average trading volume, which may lead to wider bid-ask spreads. Consider this if you are planning to trade the ETF frequently.

Market Dynamics:

Factors affecting the ETF's market environment include the overall performance of the technology sector, the adoption of new technologies by financial institutions, and regulatory changes in the financial services industry.

Competitors:

Key competitors in the thematic ETF space include ARK Fintech Innovation ETF (ARKF) and Global X FinTech ETF (FINX).

Expense Ratio:

The expense ratio for ETF Two Roads Shared Trust is 0.75%.

Investment Approach and Strategy:

The ETF uses an active management approach to identify and invest in companies that are leading the digital transformation of financial services. The portfolio includes a mix of large-cap and small-cap companies across various sub-sectors within the financial services industry.

Key Points:

• Focuses on the high-growth digital transformation of the financial services industry.
• Strong track record since inception.
• Managed by a team of experienced investment professionals.
• Higher risk due to its focus on emerging technologies.

Risks:

• The ETF is subject to higher volatility compared to traditional broad-market ETFs.
• The success of the ETF depends on the continued adoption of new technologies by the financial services industry.
• Regulatory changes could negatively impact the industry.

Who Should Consider Investing:

Two Roads Shared Trust may be suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher risk.
• Believe in the potential for technology to disrupt the financial services industry.

Fundamental Rating Based on AI:

Based on an AI-based system that analyzes various factors such as financial health, market position, and future prospects, ETF Two Roads Shared Trust receives a 7 out of 10. While the ETF shows promising potential, its small market share and higher expense ratio are areas for consideration.

Resources and Disclaimers:

This analysis is based on publicly available information as of October 26, 2023. Data was gathered from ETF.com, Invesco, and Bloomberg. This information is not financial advice and should not be used as the sole basis for investment decisions. Before investing, conduct your own research and carefully consider all risks involved.