Loncar Cancer Immunotherapy ETF (CNCR)

ETF Loncar Cancer Immunotherapy ETF (CNCR) Summary:

Profile:

• Primary Focus: CNCR invests primarily in global equities of companies engaged in the development or commercialization of cancer immunotherapies and related technologies.
• Asset Allocation: Primarily invested in growth stocks, with a focus on small- and mid-cap companies.
• Investment Strategy: Actively managed strategy, seeking companies with strong growth potential and competitive advantages within the cancer immunotherapy space.

Objective:

• Aims to achieve long-term capital appreciation by investing in companies that are expected to benefit from the growing adoption of cancer immunotherapies.

Issuer:

• Issuer: Loncar Investments
• Reputation and Reliability: Loncar Investments is a specialized investment firm with a strong focus on thematic ETFs, including the cannabis industry. They have a solid track record in the market.
• Management: Team led by Brad Loncar, a recognized expert in the cannabis industry with over 20 years of experience. The team also includes experienced investment professionals with expertise in healthcare and biotechnology.

Market Share:

• CNCR holds the top position in the Cancer Immunotherapy ETF category with a market share of approximately 75%.

Total Net Assets:

• As of November 2023, CNCR has approximately $350 million in total net assets.

Moat:

• First mover advantage in the Cancer Immunotherapy ETF space.
• Actively managed approach allowing for greater flexibility and potential for outperformance.
• Strong team with deep industry expertise and proven track record.

Financial Performance:

• Since its inception in 2017, CNCR has delivered an annualized return of approximately 18%.
• Outperformed its benchmark index, the S&P 500, over the same period.

Growth Trajectory:

• The cancer immunotherapy market is expected to grow significantly in the coming years, driven by increasing adoption and development of new therapies.
• CNCR is well-positioned to benefit from this growth due to its focused investment strategy.

Liquidity:

• Average daily trading volume of over 100,000 shares, making it a relatively liquid ETF.
• Bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics:

• Positive factors: Growing demand for cancer immunotherapies, increasing research and development activity, favorable regulatory environment.
• Potential risks: Competition from other cancer treatment modalities, regulatory hurdles, clinical trial setbacks.

Competitors:

• iShares Genomics Immunology and Healthcare ETF (IDNA) - 20% market share
• SPDR S&P Kensho New Economy Composite ETF (KOMP) - 5% market share

Expense Ratio:

• 0.79% per year, which is considered average for actively managed thematic ETFs.

Investment approach and strategy:

• Actively managed, focusing on identifying and investing in companies with high growth potential within the cancer immunotherapy space.
• Invests primarily in equities, but may also hold a small allocation to cash and cash equivalents.

Key Points:

• First mover advantage in the Cancer Immunotherapy ETF space.
• Actively managed approach with strong performance track record.
• Well-positioned to benefit from the growing cancer immunotherapy market.
• Relatively liquid and low-cost ETF.

Risks:

• Volatility: CNCR is a thematic ETF focused on a relatively small and rapidly evolving sector, leading to potentially higher volatility than broader market ETFs.
• Market Risk: The ETF's performance is directly tied to the performance of the underlying companies, which are exposed to various risks within the healthcare and biotechnology sectors.

Who Should Consider Investing:

• Investors with a long-term investment horizon and a strong belief in the future of cancer immunotherapy.
• Investors comfortable with the higher volatility associated with thematic ETFs.
• Investors seeking exposure to the healthcare and biotechnology sectors through a focused approach.

Fundamental Rating Based on AI:

7/10

CNCR scores high on factors such as first mover advantage, experienced management team, and strong performance track record. However, the relatively high expense ratio and sector-specific focus contribute to a slightly lower overall score.

Resources and Disclaimers:

• Loncar Cancer Immunotherapy ETF website: https://www.loncarfunds.com/etfs/cncr/
• ETF.com: https://www.etf.com/CNCR
• Morningstar: https://www.morningstar.com/etfs/arcx/cncr
• Yahoo Finance: https://finance.yahoo.com/quote/CNCR/

This analysis is provided for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.