Defiance Hotel Airline and Cruise ETF (CRUZ)

ETF Defiance Hotel Airline and Cruise ETF (CRUZ) Overview

Profile:

CRUZ is an actively managed ETF that invests in global companies within the hotel, airline, and cruise industries. It employs a fundamental, bottom-up stock selection process, focusing on companies with strong growth potential and attractive valuations.

Objective:

CRUZ aims to provide long-term capital appreciation by investing in global hospitality companies with high growth potential.

Issuer:

Defiance ETFs is a US-based ETF issuer specializing in thematic and niche ETFs. They have a reputation for innovation and active management.

Market Share:

CRUZ holds a small market share within the Travel & Leisure ETF category. As of October 26, 2023, its assets under management (AUM) totaled around $143 million.

Moat:

CRUZ's competitive advantage lies in its:

• Active Management: The ETF utilizes active management to select individual stocks with better growth potential than the broader market.
• Niche Market Focus: By focusing on specific industries, CRUZ offers targeted exposure to the travel and leisure sector.
• Experienced Management: Defiance ETFs has a team of experienced portfolio managers with a track record of success in managing actively managed ETFs.

Financial Performance:

CRUZ has delivered positive returns since its inception in 2022. Over the past year, the ETF has outperformed its benchmark, the S&P 500 Index.

Growth Trajectory:

The travel and leisure industry is expected to experience strong growth in the coming years as travel restrictions ease and consumer confidence rebounds. This should benefit CRUZ, driving its future growth.

Liquidity:

CRUZ has a moderate average daily trading volume, ensuring sufficient liquidity for investors to trade the ETF easily.

Market Dynamics:

The ETF's market environment is influenced by factors such as economic growth, travel demand, and fuel prices.

Competitors:

Key competitors in the Travel & Leisure ETF category include:

• US Travel & Leisure ETF (USAT)
• Pacer US Small Cap Cash Cows 100 ETF (CALF)
• VanEck Travel & Leisure ETF (TRVL)

Expense Ratio:

The expense ratio for CRUZ is 0.75%, which is slightly higher than the average expense ratio for actively managed ETFs.

Investment Approach:

CRUZ employs an active management strategy to select individual stocks from the global hospitality industry. The ETF invests in a diversified portfolio of companies across different segments within the travel and leisure sector, such as airlines, hotels, cruise lines, and online travel agencies.

Key Points:

• Actively managed ETF focusing on global travel and leisure companies.
• High growth potential and outperformance compared to the benchmark.
• Experienced management team with a successful track record.
• Moderate liquidity and slightly higher expense ratio.

Risks:

• Volatility: CRUZ can experience higher volatility than broad market ETFs due to its focus on specific sectors.
• Market risk: The ETF is susceptible to risks associated with the travel and leisure industry, such as economic downturns and changes in consumer travel preferences.

Who Should Consider Investing:

CRUZ is suitable for investors seeking:

• Long-term capital appreciation through exposure to the travel and leisure industry.
• Active management with opportunities to outperform the market.
• Tolerance for higher volatility compared to broad market ETFs.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of financial health, market position, and future prospects, CRUZ receives a 7.5 out of 10.

Justification:

• Strong financial performance and outperformance against the benchmark.
• Experienced management team with a proven track record.
• Promising growth trajectory in the travel and leisure industry.

Resources:

• Defiance ETFs Website: https://www.defianceetfs.com/cruz/
• ETF Database: https://www.etfdb.com/etf/cruz/
• Yahoo Finance: https://finance.yahoo.com/quote/CRUZ/

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