Loncar Cancer Immunotherapy ETF (CNCR)

Loncar Cancer Immunotherapy ETF (CNCR): An Overview

Profile: Loncar Cancer Immunotherapy ETF (CNCR) is an actively managed exchange-traded fund that invests in global companies engaged in the development and commercialization of cancer immunotherapy products and technologies. It primarily focuses on the healthcare sector and uses a quantitative model to select stocks with strong growth potential.

Objective: CNCR aims to provide long-term capital appreciation by investing in companies that contribute to the fight against cancer through immunotherapy treatments. The fund seeks to outperform the broad market by focusing on this rapidly developing and promising field.

Issuer: Loncar Investments is a boutique investment firm specializing in thematic ETFs, with a strong reputation for innovative strategies and a focus on emerging trends. The firm has a proven track record of success, managing over $1 billion in assets across multiple ETFs.

Market Share: CNCR has a market share of approximately 1.2% within the healthcare sector ETF market. While this is relatively small, it reflects the niche focus of the ETF.

Total Net Assets: CNCR currently has over $275 million in total net assets under management. This indicates a growing investor interest in the immunotherapy space.

Moat: CNCR's competitive advantage lies in its unique focus on the immunotherapy sector. This niche strategy allows the ETF to capitalize on the potential of this rapidly growing field, offering investors exposure to a concentrated portfolio of companies with high growth potential. Additionally, the fund's active management approach enables it to adapt its portfolio quickly to changing market dynamics and identify emerging opportunities within the immunotherapy landscape.

Financial Performance: CNCR has delivered strong historical performance, outperforming the broader market indices in recent years. Since its inception in 2017, the fund has returned over 125%, exceeding the S&P 500's return by a significant margin.

Growth Trajectory: The immunotherapy market is expected to experience exponential growth in the coming years, driven by increasing research & development efforts, rising demand for personalized treatments, and expanding clinical applications. CNCR is well-positioned to benefit from this growth, offering investors the potential for continued strong returns.

Liquidity: CNCR has a relatively average trading volume, indicating moderate liquidity. The average bid-ask spread is also within the acceptable range for actively managed ETFs.

Market Dynamics: Several factors influence CNCR's market environment:

• Economic Indicators: A robust economy supports healthcare spending, potentially driving investment in immunotherapy research and development.
• Sector Growth Prospects: The rapid advancement of immunotherapy technologies and increasing adoption of these treatments create significant growth opportunities.
• Current Market Conditions: Market volatility can impact the overall performance of the ETF, although its focus on a specific sector provides some diversification benefits.

Competitors: Key competitors of CNCR include:

• iShares Nasdaq Biotechnology ETF (IBB) - Market Share: 15.4%
• VanEck Vectors Pharmaceutical ETF (PPH) - Market Share: 4.1%
• SPDR S&P Biotech ETF (XBI) - Market Share: 2.7%

Expense Ratio: CNCR has an expense ratio of 0.79%. This is slightly higher than some broad market ETFs but is considered reasonable for an actively managed thematic ETF.

Investment Approach and Strategy:

• Strategy: CNCR actively tracks a proprietary index based on a quantitative model. This model selects companies based on their involvement in immunotherapy and their potential for long-term growth.
• Composition: The ETF primarily invests in common stocks of companies involved in various aspects of cancer immunotherapy, including research & development, production, and commercialization of treatments.

Key Points:

• CNCR offers exposure to a rapidly growing and innovative sector with significant potential for long-term capital appreciation.
• The fund's active management approach and unique focus on immunotherapy provide an advantage over broad market healthcare ETFs.
• CNCR has demonstrated strong historical performance and is well-positioned to benefit from the growth trajectory of the immunotherapy market.

Risks:

• Volatility: The healthcare sector is subject to volatility due to factors like clinical trial outcomes and regulatory changes. CNCR's concentrated exposure to this sector could amplify its volatility.
• Market Risk: The performance of the ETF is dependent on the success of the underlying companies, which are exposed to various market risks, like competition and changes in treatment adoption rate.

Who Should Consider Investing:

CNCR is suitable for investors seeking long-term growth potential with a high-risk tolerance and a strong belief in the potential of cancer immunotherapy. The ETF is particularly appealing to those seeking exposure to a niche sector with significant innovation and future growth potential.

Fundamental Rating Based on AI:

Based on an AI-powered rating system, considering financial health, market position, and future prospects, we assign Loncar Cancer Immunotherapy ETF (CNCR) a rating of 8.5 out of 10.

The rating is primarily driven by the following factors:

• Strong financial performance and consistent outperformance compared to the benchmark index.
• Unique niche focus on a high-growth sector with significant market potential.
• Experienced management team with a strong track record in thematic ETF strategies.
• Moderate liquidity and competitive expense ratio.

While the ETF faces potential risks associated with market volatility and concentrated exposure, its focus on a rapidly growing and innovative sector, combined with its active management approach, positions it favorably for future growth and success.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Loncar Investments website: https://loncarfunds.com/etf/cncr/
• ETFdb.com: https://etfdb.com/etf/CNCR/
• Yahoo Finance: https://finance.yahoo.com/quote/CNCR/
• Morningstar: https://www.morningstar.com/etfs/arcx/cncr/quote

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