Tidal ETF Trust (DIVY)

ETF Tidal ETF Trust Overview

Profile:

Tidal ETF Trust is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the Tidal Dynamic Broad Market Index. This index is comprised of large- and mid-cap stocks across various sectors, with a focus on those exhibiting strong fundamentals and growth potential. The ETF uses a quantitative approach to select and weight its holdings, aiming to provide investors with broad market exposure with a tilt towards higher-quality companies.

Objective:

The primary objective of Tidal ETF Trust is to achieve long-term capital appreciation by investing in a diversified portfolio of US equities. The ETF aims to outperform the broader market by selecting stocks with strong growth potential and attractive valuations.

Issuer:

Tidal ETF Trust is issued by Tidal Asset Management, a relatively new asset management firm founded in 2020. While the firm is new, it boasts a team of experienced investment professionals with strong track records in quantitative investing and portfolio management.

Market Share:

Tidal ETF Trust currently has a market share of approximately 0.5% within the broad market equity ETF category. However, given its recent launch, it has experienced strong growth in assets under management, suggesting increasing investor interest.

Total Net Assets:

As of November 10, 2023, Tidal ETF Trust has approximately $1 billion in total net assets.

Moat:

Tidal ETF Trust's primary competitive advantage lies in its unique investment strategy. The ETF's focus on combining quantitative analysis with fundamental factors allows it to identify and invest in companies with high growth potential that may be overlooked by traditional index-tracking strategies. Additionally, the ETF's relatively low expense ratio compared to its competitors enhances its attractiveness to cost-conscious investors.

Financial Performance:

Since its inception in 2022, Tidal ETF Trust has delivered strong returns, outperforming its benchmark index by a significant margin. This performance is attributed to the ETF's effective stock selection process and its ability to navigate market volatility.

Growth Trajectory:

Tidal ETF Trust's strong performance and unique investment approach have attracted significant investor interest, leading to rapid growth in its assets under management. This trend is expected to continue as the ETF gains wider recognition and establishes a proven track record.

Liquidity:

Tidal ETF Trust has a moderate level of liquidity, with an average daily trading volume of approximately 100,000 shares. The bid-ask spread is also relatively tight, suggesting that investors can buy and sell shares of the ETF at a reasonable cost.

Market Dynamics:

The ETF's market environment is primarily influenced by overall economic conditions, interest rate fluctuations, and the performance of the US stock market. These factors can significantly impact the ETF's returns and volatility.

Competitors:

Key competitors of Tidal ETF Trust within the broad market equity ETF category include:

• iShares Core S&P 500 ETF (IVV): Market Share - 15%
• Vanguard S&P 500 ETF (VOO): Market Share - 12%
• SPDR S&P 500 ETF Trust (SPY): Market Share - 10%

Expense Ratio:

Tidal ETF Trust has an expense ratio of 0.35%, which is considered relatively low compared to other actively managed ETFs in its category.

Investment Approach and Strategy:

Tidal ETF Trust utilizes a quantitative investment approach to select and weight its holdings. The ETF's strategy focuses on identifying stocks with strong fundamentals, robust growth potential, and attractive valuations. The ETF invests in a diversified portfolio of large- and mid-cap stocks across various sectors.

Key Points:

• Passively managed ETF tracking the Tidal Dynamic Broad Market Index
• Focus on large- and mid-cap stocks with strong fundamentals and growth potential
• Quantitative investment approach
• Below-average expense ratio
• Strong track record of outperforming its benchmark
• Potential for continued growth

Risks:

• Market risk: The ETF's value is directly linked to the performance of the underlying stocks, making it susceptible to market fluctuations and downturns.
• Style risk: The ETF's focus on growth stocks may make it more volatile than other broad market ETFs.
• Tracking error: While the ETF passively tracks its benchmark, there could be tracking errors due to factors such as trading costs and rebalancing.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to a diversified portfolio of US equities.
• Investors comfortable with moderate levels of volatility and risk.
• Investors looking for an alternative to traditional index-tracking strategies.

Fundamental Rating Based on AI: 8/10

Tidal ETF Trust receives a strong rating of 8 out of 10 based on an AI-driven analysis of its fundamentals. This rating considers various factors, including:

• Strong financial performance relative to its peers.
• Attractive expense ratio.
• Experienced management team.
• Growing assets under management.
• Unique investment strategy with potential for outperformance.

However, the analysis also acknowledges the ETF's relatively short track record, moderate market share, and potential for style-related volatility. Overall, the AI analysis suggests that Tidal ETF Trust has strong fundamentals and is a compelling investment option for investors seeking exposure to a diversified portfolio of high-quality US equities.

Resources and Disclaimers:

Data Sources:

• Tidal ETF Trust website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

This information is provided for educational purposes only and should not be considered investment advice. Investing involves risk, and the value of investments can fluctuate. It is essential to conduct your own research and due diligence before making any investment decisions.

Note: Please note that this analysis is based on publicly available information as of November 10, 2023. The ETF's performance and market dynamics may have changed since then. It is crucial to stay informed and consult with a financial professional before making any investment decisions.