Arrow DWA Tactical: Macro ETF (DWAT)DWAT

ETF Arrow DWA Tactical: Macro ETF - Investment Overview

Profile:

ETF Arrow DWA Tactical: Macro ETF is an actively managed exchange-traded fund that aims to achieve capital appreciation by employing tactical asset allocation strategies across various asset classes. It invests in a diversified portfolio of global equities, fixed income, and alternative assets like commodities, real estate, and currencies. The ETF utilizes the Dorsey Wright Asset Management (DWAM) Tactical Macro Allocation Model, which employs technical analysis and quantitative measures to identify potential opportunities and dynamically adjust the portfolio allocation to capitalize on market trends.

Objective:

The primary investment goal of this ETF is to generate long-term capital appreciation through active management and tactical asset allocation. It seeks to outperform traditional buy-and-hold investment strategies by taking advantage of changing market conditions and identifying opportunities across various asset classes.

Issuer:

Issuer: Arrow Investment Management LLC

Reputation and Reliability: Arrow Investment Management LLC is a subsidiary of ArrowMark Partners, a leading investment management firm with over $50 billion in assets under management. The firm has a strong reputation for its expertise in quantitative investment strategies and a long-standing track record of success.

Management: The ETF is managed by a team of experienced investment professionals at DWAM, a quantitative investment firm specializing in tactical asset allocation strategies. The team has extensive experience in developing and implementing quantitative models for portfolio construction and risk management.

Market Share:

ETF Arrow DWA Tactical: Macro ETF is a relatively new offering in the actively managed ETF space, holding a small market share within the broader tactical asset allocation ETF category. However, the ETF has seen steady growth in assets under management since its inception.

Total Net Assets:

As of October 26, 2023, ETF Arrow DWA Tactical: Macro ETF has approximately $150 million in total net assets.

Moat:

The ETF's competitive advantage lies in its unique and actively managed approach to asset allocation. The DWAM Tactical Macro Allocation Model leverages technical analysis and quantitative measures to identify potential trends and opportunities, offering a differentiated approach compared to passively managed ETFs.

Financial Performance:

The ETF has a relatively short track record, making it challenging to evaluate its long-term performance definitively. However, since its inception in January 2022, the ETF has generated positive returns, outperforming the S&P 500 index.

Growth Trajectory:

The ETF's growth trajectory appears promising, with increasing investor interest in actively managed investment strategies and tactical asset allocation approaches. The ETF's assets under management have been steadily growing since its launch.

Liquidity:

The ETF has a moderate average trading volume, providing sufficient liquidity for most investors. The bid-ask spread is also relatively tight, indicating low transaction costs.

Market Dynamics:

The ETF's market environment is influenced by various factors, including economic indicators, interest rate policies, and global market events. The ETF's performance can be impacted by changes in these factors, highlighting the importance of active management and tactical asset allocation strategies.

Competitors:

Key competitors in the actively managed ETF space include:

• iShares Core S&P 500 ETF (IVV)
• Vanguard Total Stock Market ETF (VTI)
• SPDR S&P 500 ETF (SPY)
• Invesco QQQ Trust (QQQ)

Expense Ratio:

The ETF's expense ratio is 0.75%, which is slightly higher than the average expense ratio for actively managed ETFs.

Investment Approach and Strategy:

The ETF follows an active management approach, employing tactical asset allocation strategies across various asset classes based on quantitative models and technical analysis. The ETF's composition can vary depending on market conditions but typically includes a mix of equities, fixed income, and alternative assets.

Key Points:

• Actively managed ETF with a focus on tactical asset allocation.
• Invests in a diversified portfolio of global equities, fixed income, and alternative assets.
• Utilizes the DWAM Tactical Macro Allocation Model for identifying potential opportunities.
• Aims to achieve long-term capital appreciation through active management.
• Relatively new ETF with a positive track record since its inception.

Risks:

• The ETF is subject to market risks associated with the underlying assets, including equities, fixed income, and alternative investments.
• The ETF's performance can be volatile due to its active management approach and exposure to various asset classes.
• The ETF's expense ratio is slightly higher than the average for actively managed ETFs.

Who Should Consider Investing:

This ETF is suitable for investors seeking long-term capital appreciation through active management and tactical asset allocation. Investors should have a moderate to high risk tolerance and understand the potential volatility associated with this type of investment strategy.

Fundamental Rating Based on AI:

Based on an AI-driven analysis, ETF Arrow DWA Tactical: Macro ETF receives a 7 out of 10 fundamental rating. This rating considers factors such as the ETF's financial performance, expense ratio, market share, and growth trajectory. While the ETF has a relatively short track record, its active management approach, experienced team, and positive performance history indicate strong potential for future growth. However, investors should consider the ETF's higher expense ratio and potential volatility before investing.

Resources and Disclaimers:

Data for this analysis was gathered from various sources, including ETF Arrow DWA Tactical: Macro ETF's website, Morningstar, and Bloomberg Terminal.

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Investors should conduct their due diligence before making any investment decisions.