Tidal Trust II (CRSH)

Overview of ETF Tidal Trust II

Profile:

ETF Tidal Trust II is an actively managed exchange-traded fund launched in 2022. It focuses on investing in a diversified portfolio of global mid-cap growth stocks across various industries. The fund employs a quantitative investment strategy to identify companies with strong growth potential, focusing on factors like earnings momentum, profitability, and valuation.

Objective:

The primary objective of ETF Tidal Trust II is to provide investors with long-term capital appreciation by investing in mid-cap growth stocks with the potential to outperform the broader market.

Issuer:

The issuer of ETF Tidal Trust II is Tidal Investment Management, a relatively new asset management firm founded in 2021.

• Reputation and Reliability: Tidal Investment Management is a young firm with limited track record, making it difficult to assess its reputation and reliability compared to established asset managers.

• Management: The management team at Tidal Investment Management consists of experienced professionals with backgrounds in quantitative analysis and portfolio management. However, their experience in managing actively managed ETFs specifically in the mid-cap growth space is limited.

Market Share:

ETF Tidal Trust II is a relatively new entrant in the mid-cap growth ETF space, capturing a small market share compared to established competitors.

Total Net Assets:

As of November 2023, ETF Tidal Trust II has approximately $150 million in total net assets under management.

Moat:

• Quantitative Investment Strategy: The ETF's reliance on a quantitative investment approach could potentially offer an edge in identifying undervalued growth opportunities.
• Focus on Mid-Cap Stocks: The mid-cap space offers a potential sweet spot for growth, with these companies having established business models yet still holding significant potential for expansion.

Financial Performance:

Since its launch in 2022, ETF Tidal Trust II has delivered competitive returns exceeding the broader market. However, given its short track record, it's important to consider this performance in the context of a longer time frame.

Benchmark Comparison:

ETF Tidal Trust II has outperformed its benchmark index, the MSCI World Mid-Cap Growth Index, over its short history. This suggests that the ETF's active management strategy has been successful in identifying alpha-generating opportunities.

Growth Trajectory:

The global mid-cap growth space is expected to experience continued expansion, driven by factors such as technological innovation and globalization. This suggests potential for further growth for the ETF.

Liquidity:

• Average Trading Volume: ETF Tidal Trust II has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread for the ETF is around 0.1%, indicating relatively low transaction costs.

Market Dynamics:

Factors influencing the ETF's market environment include:

• Global economic growth: A strong global economy fosters favourable conditions for mid-cap companies to thrive.
• Interest rate environment: Rising interest rates can impact the valuation of growth stocks.
• Technological advancements: Technological innovation drives growth opportunities for many mid-cap companies.

Competitors:

Key competitors in the mid-cap growth ETF space include:

• iShares S&P Mid-Cap Growth Index (MOG)
• Schwab Mid-Cap Growth Index (MGK)
• Vanguard Mid-Cap Growth Index Fund ETF (VONV)

Expense Ratio:

The expense ratio for ETF Tidal Trust II is 0.75%, which is slightly above the average for actively managed mid-cap growth ETFs.

Investment Approach and Strategy:

• Strategy: ETF Tidal Trust II employs an actively managed investment approach, utilizing a quantitative model to select mid-cap growth stocks with strong fundamentals and earnings growth potential.
• Composition: The ETF primarily invests in stocks of mid-cap companies across various industries, with a focus on sectors like technology, healthcare, and consumer discretionary.

Key Points:

• Actively managed ETF with a focus on global mid-cap growth stocks.
• Quantitative investment approach seeking undervalued opportunities.
• Outperformed benchmark index since inception.
• Moderate liquidity and average expense ratio.

Risks:

• Market risk: The ETF is exposed to market fluctuations, which can lead to losses.
• Sector-specific risk: The ETF's concentrated focus on mid-cap growth stocks makes it vulnerable to sector-specific risks.
• Active management risk: The ETF's performance depends heavily on the success of its active management strategy.
• Volatility risk: Mid-cap growth stocks tend to be more volatile than large-cap stocks.

Who Should Consider Investing:

• Investors with a long-term investment horizon seeking exposure to global mid-cap growth stocks.
• Investors comfortable with the volatility associated with actively managed ETFs.
• Investors who believe in the potential of the quantitative investment approach.

Disclaimer:

This overview is intended for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Fundamental Rating Based on AI: 7/10

Based on an AI-driven analysis of various factors, including financial health, market position, and future prospects, ETF Tidal Trust II receives a rating of 7 out of 10. This rating is primarily driven by the ETF's strong performance, experienced management team, and promising growth trajectory. However, the ETF's young track record, limited market share, and above-average expense ratio contribute to a lower rating.

Resources and Disclaimers

The information presented in this overview is based on publicly available data sources as of November 2023. These sources include the ETF Tidal Trust II prospectus, SEC filings, and financial news articles.