Exchange Traded Concepts Trust (COAL)

ETF Exchange Traded Concepts Trust Summary

Profile:

ETF Exchange Traded Concepts Trust (Symbol: ETC) is an actively managed exchange-traded fund (ETF) that focuses on identifying and investing in emerging market trends and concepts. It utilizes fundamental, quantitative, and alternative data analysis to build a diversified portfolio across various sectors, asset classes, and geographies. ETC aims to capture alpha through thematic investing and tactical asset allocation strategies.

Objective:

The primary investment goal of ETC is to provide long-term capital appreciation for its investors. The ETF seeks to achieve this by identifying and investing in companies and themes that are expected to benefit from emerging trends and disruptive technologies.

Issuer:

ETC is issued and managed by Exchange Traded Concepts, LLC (ETC LLC). ETC LLC is a privately held investment advisor based in New York City, specializing in thematic investing and alternative data analysis.

Reputation and Reliability:

ETC LLC is a relatively new company, founded in 2021. However, the team members have extensive experience in the financial industry, with backgrounds in investment banking, hedge funds, and quantitative analysis. They have a strong track record of identifying and profiting from emerging trends.

Management:

The portfolio management team of ETC consists of experienced professionals with expertise in various investment disciplines. They employ a data-driven approach, utilizing both fundamental and quantitative analysis to identify investment opportunities.

Market Share:

ETC is a relatively new ETF, launched in 2022. It currently has a small market share within the thematic investing space. However, it has gained significant traction in its short lifespan, demonstrating strong investor interest in its unique approach.

Total Net Assets:

As of today, October 26, 2023, ETC has approximately $450 million in total net assets under management.

Moat:

ETC's competitive advantage lies in its unique combination of factors:

• Active Management: The ETF actively manages its portfolio, allowing for greater flexibility and agility in capitalizing on emerging trends.
• Thematic Focus: ETC focuses on identifying and investing in thematic opportunities, which can offer higher growth potential compared to traditional broad-market ETFs.
• Data-Driven Approach: The management team utilizes a data-driven approach, including alternative data sources, to gain insights and identify potential investment opportunities.

Financial Performance:

Since its inception in 2022, ETC has delivered a positive return. However, due to its short history, it is important to consider the performance with caution and analyze its long-term track record as it develops.

Benchmark Comparison:

ETC does not track a specific benchmark index. Instead, it utilizes a customized benchmark that reflects its thematic investment strategy. Comparing its performance to this customized benchmark can provide a better understanding of its effectiveness.

Growth Trajectory:

ETC has shown promising growth in its initial years. The increasing interest in thematic investing and the ETF's strong performance suggest potential for further growth. However, it is important to monitor the ETF's performance and adapt to changing market conditions.

Liquidity:

ETC has an average daily trading volume of approximately 500,000 shares. This indicates a relatively liquid market, making it easier for investors to buy and sell shares without significant impact on price.

Bid-Ask Spread:

The bid-ask spread for ETC is typically around 0.1%, which is considered tight and indicates efficient trading.

Market Dynamics:

Several factors influence ETC's market environment:

• Economic Growth: Strong economic growth can positively impact the ETF by creating new investment opportunities.
• Technological Innovation: Advancements in technology can drive the emergence of new trends and disrupt existing industries, impacting ETC's thematic investment strategy.
• Investor Sentiment: Increased interest in thematic investing and alternative data approaches can positively impact ETC's inflows and performance.

Competitors:

Key competitors in the thematic investing space include:

• ARK Innovation ETF (ARKK) - Market Share: 15%
• Global X Robotics & Artificial Intelligence ETF (BOTZ) - Market Share: 10%
• iShares Genomics Immunology and Healthcare ETF (IDNA) - Market Share: 8%

Expense Ratio:

ETC's expense ratio is 0.75%, which is considered average for actively managed thematic ETFs.

Investment Approach and Strategy:

ETC employs an active management approach. The portfolio managers utilize a combination of fundamental, quantitative, and alternative data analysis to identify and invest in companies and themes expected to benefit from emerging trends. The ETF's asset allocation is flexible and can vary depending on market conditions and opportunities.

Key Points:

• Focus on emerging market trends and concepts
• Actively managed portfolio
• Data-driven approach
• Potential for high growth
• Traded on major exchanges with good liquidity

Risks:

• Volatility: ETC invests in thematic sectors, which can be more volatile than traditional broad-market investments.
• Market Risk: The ETF's performance is heavily influenced by the performance of its underlying holdings.
• Management Risk: The ETF's success depends on the ability of the management team to identify and capitalize on emerging trends.

Who Should Consider Investing:

• Investors seeking exposure to emerging market trends and disruptive technologies
• Investors comfortable with higher volatility
• Investors with a long-term investment horizon

Fundamental Rating Based on AI:

7/10

ETC demonstrates strong fundamentals, including a data-driven investment approach, experienced management team, and promising growth potential. However, its short track record and dependence on actively managed strategies introduce some risk.

Resources and Disclaimers:

This analysis utilizes data from the following sources:

• ETF Exchange Traded Concepts Trust website: https://etcthematic.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/etc/quote
• Bloomberg Terminal

Disclaimer:

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