Two Roads Shared Trust - LeaderShares Dynamic Yield ETF (DYLD)

ETF Two Roads Shared Trust - LeaderShares Dynamic Yield ETF (DYLS) Summary:

Profile:

DYLS is an actively managed ETF that seeks to provide high current income and capital appreciation. It invests primarily in income-generating securities issued by U.S. and non-U.S. companies across various sectors. The ETF employs a dynamic yield strategy, adjusting its portfolio holdings based on market conditions to maximize income potential.

Objective:

DYLS's primary objective is to generate high current income through dividends and interest payments, while also aiming for capital appreciation through long-term growth of the underlying holdings.

Issuer:

LeaderShares, a subsidiary of Two Roads Shared Trust, is the issuer of DYLS.

• Reputation and Reliability: LeaderShares has a relatively short track record compared to other major ETF issuers. Its parent company, Two Roads Shared Trust, has a longer history and manages other successful ETFs.
• Management: The portfolio management team at LeaderShares has experience in fixed income and alternative investment strategies.

Market Share and AUM:

DYLS currently holds a small market share within the income-generating ETF space. As of November 8, 2023, its total net assets under management are approximately $450 million.

Moat:

• Dynamic Yield Strategy: DYLS's active management approach allows it to adapt to changing market conditions and potentially capture higher income opportunities compared to statically-weighted income ETFs.
• Access to Global Income Markets: DYLS invests in both U.S. and international income-generating securities, which can provide diversification benefits and access to higher-yielding assets.

Financial Performance:

DYLS has a relatively short track record since its inception in 2022. Its historical performance data is limited, making it difficult to assess its long-term performance consistency. It's important to compare its performance to its benchmark and relevant competitors over extended periods once more data becomes available.

Growth Trajectory:

DYLS operates in a growing market for income-generating ETFs. The increasing demand for income-oriented investments, particularly during periods of market volatility, could favor DYLS's growth trajectory.

Liquidity:

DYLS has a moderate average trading volume, indicating decent liquidity. However, the bid-ask spread might be slightly wider compared to larger ETFs, potentially resulting in slightly higher trading costs.

Market Dynamics:

Market dynamics affecting DYLS include:

• Interest rate environment: Rising interest rates can negatively impact bond prices, potentially affecting DYLS's performance.
• Economic growth: A strong economy can lead to higher corporate earnings and potentially higher dividend payouts, benefiting DYLS.
• Global market volatility: Increased volatility can create opportunities for DYLS's dynamic yield strategy to capture higher income through tactical allocation adjustments.

Competitors:

Key competitors in the income-generating ETF space include:

• iShares U.S. Dividend and Income ETF (DVY)
• Vanguard High Dividend Yield ETF (VYM)
• SPDR S&P Dividend ETF (SDY)

Expense Ratio:

DYLS's expense ratio is 0.85%, which is slightly above the average for income-generating ETFs.

Investment Approach and Strategy:

• Strategy: DYLS employs an active management approach, dynamically adjusting its portfolio holdings based on market conditions to maximize income potential.
• Composition: The ETF primarily invests in income-generating securities, including U.S. and non-U.S. corporate bonds, preferred stocks, and real estate investment trusts (REITs).

Key Points:

• High income potential through a dynamic yield strategy.
• Global diversification across various income-generating assets.
• Actively managed portfolio for potential outperformance.
• Moderate liquidity and slightly higher expense ratio compared to some competitors.

Risks:

• Market risk: DYLS's performance is dependent on the underlying assets' market performance, which can be volatile.
• Interest rate risk: Rising interest rates can negatively impact bond prices and potentially decrease DYLS's NAV.
• Credit risk: DYLS invests in corporate bonds, which carry varying degrees of credit risk. Defaults or credit downgrades can negatively impact the ETF's performance.
• Management risk: DYLS's performance relies heavily on the portfolio management team's ability to identify and capitalize on income-generating opportunities.

Who Should Consider Investing:

DYLS might be suitable for investors seeking:

• High current income through dividends and interest payments.
• Potential capital appreciation through long-term growth of the underlying holdings.
• Exposure to global income-generating assets with active management.
• Investors with a moderate risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

7/10

DYLS demonstrates promising features with its dynamic yield strategy, global diversification, and active management approach. However, its limited track record, relatively small market share, and slightly higher expense ratio compared to larger competitors warrant further consideration. Analyzing its performance over extended periods and comparing it to relevant benchmarks and competitors will provide a more comprehensive view of its long-term potential.

Resources:

• LeaderShares Website: https://leadershares.com/etfs/dyls/
• ETF Database: https://etfdb.com/etf/DYLS/
• Morningstar: https://www.morningstar.com/etfs/arcx/dyls/quote

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. It is essential to conduct thorough research and due diligence before making any investment decisions. Individual circumstances and risk tolerance levels vary, and professional financial advice is always recommended.