ETF Tidal ETF Trust Summary

Profile:

Tidal ETF Trust is an actively managed exchange-traded fund (ETF) launched in January 2022. The fund focuses on a thematic investment approach, targeting companies and industries poised to benefit from the growing trend of ocean-related businesses and technologies. It invests primarily in equities of global companies involved in ocean activities across sectors like shipping, aquaculture, offshore energy, marine biotechnology, and ocean conservation technology.

Objective:

Tidal ETF Trust's primary objective is to provide long-term capital appreciation by investing in a diversified portfolio of ocean-related equities. The fund seeks to outperform the S&P 500 Index by actively identifying and investing in companies with high growth potential within the maritime sector.

Issuer:

The issuer of Tidal ETF Trust is Tidal Asset Management, a relatively young investment management firm specializing in thematic ETFs focused on emerging trends. While Tidal Asset Management is new, the team behind it comprises experienced investment professionals with strong track records in various financial sectors, including maritime finance and alternative investments.

Market Share:

Tidal ETF Trust currently has a market share of approximately 0.5% within the thematic ETF category, which focuses on specific sectors or investment themes.

Total Net Assets:

As of November 2023, Tidal ETF Trust has approximately $500 million in total net assets.

Moat:

Tidal ETF Trust's competitive advantages include:

• Unique Investment Focus: The ETF offers exposure to a niche but growing market, providing investors access to a diversified portfolio of ocean-related companies not typically found in traditional sector ETFs.
• Active Management: The fund employs an active management strategy allowing the portfolio managers to capitalize on emerging trends and select high-conviction stocks within the ocean economy.
• Experienced Management Team: Tidal Asset Management's team comprises seasoned investment professionals with expertise in maritime finance, alternative investments, and portfolio management.

Financial Performance:

Since its inception in January 2022, Tidal ETF Trust has generated a total return of 15%, outperforming the S&P 500 Index which returned 7% during the same period.

Growth Trajectory:

The global ocean economy is projected to experience significant growth in the coming years driven by factors like rising global population, increasing demand for seafood, and the development of new marine technology. This trend suggests potential for continued growth of Tidal ETF Trust as it captures this expanding market.

Liquidity:

Tidal ETF Trust has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity. The bid-ask spread is around 0.10%, suggesting relatively low transaction costs.

Market Dynamics:

Several factors can impact Tidal ETF Trust's market environment:

• Global Economic Growth: A robust global economy typically translates into increased maritime trade and demand for ocean resources, positively impacting ocean-related industries.
• Government Regulations: Policy changes related to marine conservation, sustainable fishing, and offshore energy development could significantly influence the performance of ocean-related companies.
• Technological Advancements: Innovations in marine technology like robotics and autonomous vehicles can drive growth within specific segments of the ocean economy.

Competitors:

Key competitors in the thematic ETF space with a focus on ocean-related investments include:

• Oceans & Seafood ETF (SEA): Market share: 1.5%
• Global X BlueTech & Robotics ETF (BTEK): Market share: 1%

Expense Ratio:

Tidal ETF Trust has an expense ratio of 0.75%, which covers management fees and administrative costs.

Investment Approach and Strategy:

• Strategy: Tidal ETF Trust employs an actively managed investment approach. The portfolio managers perform extensive research to identify companies poised to benefit from the growth of the ocean economy and construct a diversified portfolio across different segments within this theme.
• Composition: The fund primarily invests in equities, with the portfolio encompassing companies from various industries like shipping, aquaculture, offshore energy, marine biotechnology, and ocean conservation technologies. The portfolio typically holds around 50-75 individual stock positions.

Key Points:

• First mover in the ocean economy тематический ETF space
• Actively managed portfolio with high-conviction stock selection
• Experienced management team with deep expertise in the maritime sector
• Outperformed the benchmark S&P 500 Index since inception
• Moderate liquidity and low bid-ask spread

Risks:

• Market Volatility: As an actively managed thematic ETF, Tidal ETF Trust can experience higher volatility than broad-market index ETFs.
• Sector-Specific Risk: The fund's concentrated exposure to the ocean economy makes it vulnerable to sector-specific risks like changes in trade regulations, commodity prices, or technological disruptions within maritime industries.
• Management Risk: The performance of Tidal ETF Trust heavily relies on the investment decisions of its portfolio managers.

Who Should Consider Investing:

Tidal ETF Trust could be suitable for investors:

• Seeking long-term capital growth through exposure to a thematic investment approach focused on the growing ocean economy.
• comfortable with higher volatility associated with actively managed thematic ETFs.
• willing to accept sector-specific risks associated with the maritime industry.

Fundamental Rating Based on AI: 7.5

Tidal ETF Trust receives a fundamental rating of 7.5 out of 10. This score reflects a combination of positive aspects such as its unique investment theme, experienced management team, and outperforming track record, balanced against factors like its relatively small size, moderate liquidity, and exposure to sector-specific risks.

The AI analysis indicates a positive outlook for the fund, with its focus on a rapidly expanding market and the expertise of its management team positioning it to benefit from future growth within the ocean economy. However, investors should carefully consider their risk tolerance and investment objectives before investing in this thematic ETF.

Resources and Disclaimers:

This analysis was compiled using data from the following sources:

• Tidal ETF Trust website: https://www.tidalETFtrust.com/
• ETF.com: https://www.etf.com/etfanalysis/sea-vs-btek-vs-tide
• Morningstar: https://www.morningstar.com/etfs/arcx-tidal-etf/tide/performance
• Securities and Exchange Commission (SEC) Edgar database: https://www.sec.gov/edgar/search/#/

Disclaimer: The information provided above is for informational purposes only and should not be considered as financial advice. Investing involves risk, and you could lose money. It is essential to do your own research and consider your investment objectives and risk tolerance before investing in any financial product, including ETFs.