EA Series Trust (DRLL)DRLL

Overview of ETF EA Series Trust - Strive U.S. Energy ETF (DRLL)

Profile:

DRLL is an actively managed ETF that invests primarily in publicly traded U.S. energy companies. It focuses on companies involved in the exploration, production, transportation, and refining of oil and natural gas.

Objective:

DRLL's primary objective is to achieve long-term capital appreciation by investing in U.S. energy companies with strong fundamentals and growth potential.

Issuer:

Strive Asset Management is the issuer of DRLL.

Reputation and Reliability:

Strive Asset Management is a relatively new investment firm founded in 2020. They have a limited track record, making it difficult to assess their reputation and reliability fully.

Management:

DRLL is managed by Vivek Ramaswamy, the founder and CEO of Strive Asset Management. He has experience in the healthcare and biotechnology industries.

Market Share:

DRLL is a relatively small ETF with a market share of less than 1% in the U.S. energy sector.

Total Net Assets:

As of November 1st, 2023, DRLL has approximately $150 million in total net assets.

Moat:

DRLL's competitive advantage is its active management approach, which allows the portfolio managers to select individual companies with strong growth potential.

Financial Performance:

Since its inception in October 2022, DRLL has outperformed the S&P 500 Energy Index. However, it is important to note that this is a short track record, and past performance is not indicative of future results.

Benchmark Comparison:

DRLL's performance has been better than the S&P 500 Energy Index since its inception. However, it is important to compare its performance to other actively managed energy ETFs and broader market indices over a longer period to accurately assess its effectiveness.

Growth Trajectory:

The U.S. energy sector is expected to grow in the coming years, driven by increasing demand and rising oil prices. This could benefit DRLL's performance.

Liquidity:

DRLL has an average trading volume of around 100,000 shares per day, making it a relatively liquid ETF.

Bid-Ask Spread:

The bid-ask spread for DRLL is typically around 0.10%, which is relatively low.

Market Dynamics:

Factors affecting the energy sector include oil prices, global economic growth, and government policies.

Competitors:

DRLL's main competitors include XLE, VDE, and IEO.

Expense Ratio:

DRLL has an expense ratio of 0.75%.

Investment approach and strategy:

DRLL uses an active management approach to select individual companies with strong growth potential. The portfolio is concentrated in a relatively small number of holdings.

Key Points:

• Actively managed ETF focusing on U.S. energy companies.
• Outperformed the S&P 500 Energy Index since its inception.
• Relatively small and new with limited track record.
• High expense ratio compared to some competitors.

Risks:

• Volatility: The energy sector is known for its volatility, which can impact DRLL's performance.
• Market Risk: DRLL is exposed to the risks associated with the energy sector, such as changes in oil prices and government policies.
• Active Management Risk: DRLL's performance is dependent on the skill of its portfolio managers.

Who Should Consider Investing:

DRLL is suitable for investors who are looking for long-term capital appreciation and are comfortable with the risks associated with the energy sector.

Fundamental Rating Based on AI:

Based on an AI analysis of DRLL's financials, market position, and future prospects, it receives a rating of 7 out of 10. This rating is based on factors such as its strong performance, experienced management team, and potential for growth in the energy sector. However, investors should consider the risks associated with the ETF and their own investment goals before making an investment decision.

Resources and Disclaimers:

This analysis is based on information gathered from publicly available sources, including DRLL's website, SEC filings, and financial news articles.

This information should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.