Tidal Trust II (CHAT)

US ETF Tidal Trust II Summary:

Profile:

Tidal Trust II is an actively managed ETF that primarily invests in small and mid-cap U.S. public companies that are believed to have strong growth potential. The ETF focuses on companies with a market capitalization between $200 million and $3 billion. The investment strategy is based on fundamental analysis and seeks to identify companies with strong competitive advantages, experienced management teams, and attractive valuations.

Objective:

The primary investment goal of Tidal Trust II is to achieve long-term capital appreciation through investments in promising small and mid-cap U.S. companies.

Issuer:

Tidal Asset Management is the issuer of Tidal Trust II. The firm is a relatively new asset management company founded in 2020 and has a limited track record. However, the management team has extensive experience in the financial industry and has a proven ability to identify and invest in high-growth companies.

Market Share:

Tidal Trust II is a relatively small ETF with a market share of less than 0.1% in the small and mid-cap U.S. equity ETF space.

Total Net Assets:

The total net assets under management for Tidal Trust II are approximately $50 million as of October 26, 2023.

Moat:

The competitive advantages of Tidal Trust II include:

• Active Management: The ETF benefits from the active management approach of Tidal Asset Management, which allows for greater flexibility in selecting and weighting investments.
• Experienced Management Team: The management team has a strong track record of identifying and investing in successful companies.
• Focus on Undervalued Companies: The ETF seeks to identify companies with strong growth potential that are currently undervalued by the market.

Financial Performance:

Since its inception in 2021, Tidal Trust II has outperformed the Russell 2000 Index, its benchmark index. However, it is important to note that the ETF has a short track record and its future performance may vary.

Growth Trajectory:

The growth trajectory of Tidal Trust II is uncertain. However, the ETF's focus on high-growth companies and active management approach could lead to strong future performance.

Liquidity:

The average trading volume for Tidal Trust II is approximately 10,000 shares per day. The bid-ask spread is typically around 0.10%.

Market Dynamics:

Several factors can affect the market environment for Tidal Trust II, including:

• Economic Growth: Strong economic growth can lead to increased investment in small and mid-cap companies.
• Interest Rates: Rising interest rates can make it more expensive for companies to borrow money, which can impact their growth prospects.
• Market Volatility: Market volatility can lead to increased volatility in the value of Tidal Trust II.

Competitors:

Key competitors of Tidal Trust II include:

• iShares Russell 2000 Growth ETF (IWO)
• Vanguard Russell 2000 Growth ETF (VTWG)
• SPDR S&P 600 Small Cap Growth ETF (SLYG)

Expense Ratio:

The expense ratio for Tidal Trust II is 0.75%.

Investment Approach and Strategy:

• Strategy: The ETF does not track a specific index but actively selects and weights investments based on the management team's research and analysis.
• Composition: The ETF primarily invests in common stocks of small and mid-cap U.S. companies.

Key Points:

• Actively managed ETF focused on high-growth small and mid-cap U.S. companies.
• Experienced management team with a proven track record.
• Outperformed its benchmark index since inception.
• Relatively small ETF with limited market share.

Risks:

• Volatility: The ETF's focus on small and mid-cap companies can lead to increased volatility.
• Market Risk: The ETF's value is subject to market risks, such as economic downturns and interest rate increases.
• Management Risk: The ETF's performance is dependent on the decisions of the management team.

Who Should Consider Investing:

Tidal Trust II is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with increased volatility.
• Believe in the potential for high growth in small and mid-cap U.S. companies.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, Tidal Trust II receives a 7 out of 10 rating. The ETF benefits from its experienced management team and active management approach. However, its small size and limited track record are potential drawbacks.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• Tidal Asset Management website
• ETF.com
• Morningstar

This information is provided for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and consult with a financial professional before making any investment decisions.