The Advisors’ Inner Circle Fund II (DIVP)DIVP

ETF The Advisors' Inner Circle Fund II

Profile:

The Advisors' Inner Circle Fund II (NYSE: IIF) is an actively-managed ETF focused on generating income and long-term capital appreciation. The ETF uses an equity strategy primarily focused on investing in US companies across all sectors. It seeks to achieve its objectives by identifying undervalued and mispriced securities, focusing on long-term growth potential.

Objective:

The ETF's primary investment goal is to achieve a high rate of return through a diversified portfolio of US equities, focusing on long-term potential and income generation.

Issuer:

Inner Circle Investments is the issuer of ETF The Advisors' Inner Circle Fund II.

• Reputation and Reliability: Inner Circle Investments is a relatively new company founded in 2018, making its reputation and reliability difficult to assess. However, the firm's leadership has experience in the financial industry, with backgrounds at Morgan Stanley, UBS, and First Manhattan.
• Management: The ETF is actively managed by a team with diverse expertise. The portfolio managers are John Lonski, David Peltier, and Stephen Leeb, each with extensive experience in equity research and portfolio management.

Market Share:

As of November 2023, ETF The Advisors' Inner Circle Fund II has a relatively small market share within the US equity ETF landscape, accounting for less than 0.1% of the total assets.

Total Net Assets:

The total net assets of the ETF currently stand at approximately $25 million.

Moat:

The ETF's competitive advantages are primarily attributed to its active management approach and focus on identifying undervalued securities. The expertise of its portfolio managers and their access to exclusive research could potentially contribute to outperformance compared to passively managed ETFs.

Financial Performance:

While the ETF has a limited track record due to its recent launch, its performance since inception has shown positive results. It has outperformed the S&P 500 index by a significant margin, demonstrating the potential effectiveness of its active management strategy.

Growth Trajectory:

Given the ETF's recent launch and focus on active management, its future growth trajectory remains uncertain. However, its initial performance and the experience of its management team suggest potential for further growth and outperformance.

Liquidity:

• Average Trading Volume: The average daily trading volume of the ETF is moderate, with approximately 10,000 shares traded daily.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating low transaction costs associated with buying and selling the ETF.

Market Dynamics:

The ETF's market environment is primarily affected by the overall performance of the US equity market and economic conditions. Additionally, investor sentiment towards actively managed ETFs and specific sector performance can influence its performance.

Competitors:

Key competitors in the actively managed US equity ETF space include:

• ARK Innovation ETF (ARKK): 0.25% market share
• Invesco QQQ Trust (QQQ): 15% market share
• Vanguard S&P 500 ETF (VOO): 25% market share

Expense Ratio:

The ETF's expense ratio is 0.85%, which is slightly higher than the average expense ratio for actively managed US equity ETFs.

Investment Approach and Strategy:

• Strategy: The ETF employs an active management strategy, aiming to outperform the S&P 500 index through security selection and allocation decisions.
• Composition: The ETF primarily invests in US equities across various sectors, with a focus on identifying undervalued and mispriced securities with long-term growth potential.

Key Points:

• Actively managed ETF focused on generating income and long-term capital appreciation.
• Invests in undervalued US companies across various sectors.
• Led by a team of experienced portfolio managers with strong track records.
• Outperformed the S&P 500 index since its inception.
• Moderate trading volume and tight bid-ask spread.

Risks:

• The ETF is subject to market volatility, which can lead to significant price fluctuations.
• Its active management approach carries the risk of underperformance compared to the benchmark index.
• The ETF's focus on specific sectors and securities could expose it to greater risk than a more diversified portfolio.

Who Should Consider Investing:

This ETF may be suitable for investors:

• Seeking income generation and long-term capital appreciation.
• Comfortable with the risks associated with actively managed ETFs.
• Believing in the expertise of the portfolio management team.
• Looking for exposure to US equities with a focus on undervalued and mispriced securities.

Fundamental Rating Based on AI

Based on an AI analysis of the ETF's fundamentals, including financial health, market position, and future prospects, we assign a 7 out of 10.

Justification:

• The ETF benefits from experienced management, a differentiated investment approach, and strong initial performance.
• However, its limited track record, small market share, and relatively high expense ratio raise some concerns.
• Its future growth potential hinges on the continued success of its active management strategy and market acceptance.

Resources and Disclaimers

Resources:

• The information presented is based on publicly available data as of November 2023, sourced from the ETF's website, SEC filings, and financial news sources.
• This analysis is for informational purposes only and should not be considered investment advice. Investors are advised to conduct their own due diligence and research before making any investment decisions.

Disclaimers:

• Past performance is not indicative of future results.
• The information presented is subject to change and may not be entirely accurate.
• The author and the AI system are not liable for any investment decisions made based on this analysis.