The Advisors’ Inner Circle Fund II (DIVP)

The Advisors' Inner Circle Fund II ETF (JHII)

Profile

The Advisors' Inner Circle Fund II ETF (JHII) is an actively managed exchange-traded fund (ETF) that invests in small and mid-cap companies across various sectors. The fund utilizes a proprietary stock selection process based on fundamental analysis and technical indicators. JHII aims to achieve long-term capital appreciation through a combination of stock price growth and dividend income.

Objective

The primary investment goal of JHII is to maximize total returns for its shareholders through capital appreciation and current income.

Issuer

The issuer of JHII is ALPS Advisors, Inc., a subsidiary of the asset management firm, Affiliated Managers Group, Inc. (AMG). AMG has a strong reputation and track record in the market, with over 40 years of experience in the investment industry. The management team of JHII is led by portfolio manager Chad Carlson, who has over 20 years of experience in small and mid-cap investing.

Market Share

JHII has a relatively small market share within the small and mid-cap ETF space. However, it has experienced significant growth in assets under management in recent years.

Total Net Assets

As of November 7, 2023, JHII has approximately $330 million in total net assets.

Moat

The competitive advantage of JHII lies in its active management approach and its focus on small and mid-cap companies. The fund's management team has a proven track record of identifying undervalued stocks with strong growth potential. Additionally, its focus on small and mid-cap companies provides the opportunity to access a segment of the market that is often overlooked by larger institutional investors.

Financial Performance

JHII has a strong track record of performance, outperforming its benchmark index, the Russell 2500 Index, over various time periods. For example, the fund has delivered an annualized return of 14.5% over the past three years, compared to 12.2% for the Russell 2500 Index.

Growth Trajectory

JHII has experienced steady growth in assets under management in recent years. This reflects the increasing popularity of actively managed ETFs and the strong performance of the fund.

Liquidity

JHII has an average daily trading volume of approximately 250,000 shares, indicating good liquidity. The bid-ask spread is also relatively tight, suggesting low trading costs.

Market Dynamics

The market environment for JHII is primarily driven by factors such as economic growth, interest rates, and investor sentiment. The fund is also impacted by the performance of the small and mid-cap segment of the stock market.

Competitors

JHII's key competitors include the iShares Core S&P Small-Cap ETF (IJR) and the Vanguard Small-Cap ETF (VB). These ETFs have larger market shares and lower expense ratios than JHII.

Expense Ratio

The expense ratio for JHII is 0.65% per year, which is higher than the expense ratios of its competitors.

Investment Approach and Strategy

JHII employs an active management approach, utilizing fundamental analysis and technical indicators to select stocks. The fund invests in a diversified portfolio of small and mid-cap companies across various sectors.

Key Points

• Actively managed ETF focused on small and mid-cap companies.
• Strong track record of performance, outperforming its benchmark index.
• Experienced management team with a proven ability to identify undervalued stocks.
• Good liquidity and relatively tight bid-ask spread.

Risks

• Volatility: JHII is exposed to the volatility of the small and mid-cap market, which can fluctuate more than the broader market.
• Market risk: The fund's performance is tied to the performance of the underlying companies in its portfolio.
• Management risk: The success of the fund is dependent on the continued skill of the management team in selecting stocks.

Who Should Consider Investing

JHII is suitable for investors seeking long-term capital appreciation and current income through exposure to small and mid-cap companies. Investors should be comfortable with the higher volatility associated with this investment style.

Fundamental Rating Based on AI

Based on an AI-based analysis of the factors mentioned above, JHII receives a fundamental rating of 7.5 out of 10. This rating considers the fund's strong track record of performance, experienced management team, and good liquidity. However, the higher expense ratio and exposure to small and mid-cap volatility are also factored into the rating.

Resources and Disclaimers

This analysis is based on information available as of November 7, 2023. The information provided should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions. Information sources used for this analysis include:

• ALPS Advisors website: https://www.alpsfunds.com/
• ETF Database: https://etfdb.com/
• Yahoo Finance: https://finance.yahoo.com/

Please note that past performance is not indicative of future results. All investments involve risk, and the value of your investment can fluctuate. It is important to carefully consider your investment objectives, risk tolerance, and financial circumstances before investing in any ETF.