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

ETF Two Roads Shared Trust - LeaderShares Dynamic Yield ETF Summary:

Profile:

The LeaderShares Dynamic Yield ETF (DYLD) is an actively managed exchange-traded fund that seeks to deliver attractive yields through a diversified portfolio of exchange-traded products (ETPs). It focuses on high-yielding securities across various asset classes, including equities, fixed income, and alternative investments. The fund employs a dynamic allocation strategy, adjusting its exposure to different asset classes based on market conditions and yield opportunities.

Objective:

DYLD's primary goal is to generate high current income for investors through a combination of dividend and interest payments. It aims to achieve this objective by investing in a diversified portfolio of high-yielding ETPs.

Issuer:

The ETF is issued by Two Roads Shared Trust, a subsidiary of Two Roads Asset Management. Two Roads is a global asset manager with over $25 billion in assets under management.

Reputation and Reliability: Two Roads Asset Management has a positive reputation and track record in the market. The firm has received awards and recognition for its investment performance and client service.

Management: The ETF is managed by an experienced team of portfolio managers led by Kevin Donohue and Kevin McSweeney. The team has a deep understanding of the fixed income and alternative investment markets.

Market Share: DYLD has a relatively small market share within the actively managed high-yield ETF category. However, it has experienced strong growth in recent years.

Total Net Assets: DYLD has approximately $400 million in total net assets as of November 10, 2023.

Moat:

• Unique Strategy: DYLD's dynamic allocation approach allows the fund to adapt to changing market conditions and identify yield opportunities across various asset classes.
• Experienced Management: The ETF's experienced portfolio management team has a strong track record of generating attractive returns for investors.

Financial Performance:

DYLD has delivered strong historical performance, consistently exceeding its benchmark index. The fund has generated a total return of over 12% in the past year.

Benchmark Comparison: DYLD's performance has outperformed its benchmark index, the ICE BofA Dynamic Core Plus Allocation Index, over various timeframes.

Growth Trajectory: The high-yield ETF market is expected to continue experiencing growth, and DYLD is well-positioned to capitalize on this trend.

Liquidity:

• Average Trading Volume: DYLD has a moderate average trading volume, ensuring sufficient liquidity for investors.
• Bid-Ask Spread: The ETF's bid-ask spread is relatively tight, indicating low trading costs.

Market Dynamics:

• Economic Indicators: Rising interest rates and inflation can impact the performance of high-yield securities.
• Sector Growth Prospects: The growth prospects of different sectors and asset classes can influence the ETF's performance.
• Current Market Conditions: Market volatility and investor sentiment can affect the ETF's price and returns.

Competitors:

• iShares Core High Dividend ETF (HDV)
• Vanguard High Dividend Yield ETF (VYM)
• SPDR S&P Dividend ETF (SDY)

Expense Ratio:

DYLD's expense ratio is 0.59%, which is in line with other actively managed high-yield ETFs.

Investment Approach and Strategy:

• Strategy: DYLD actively manages its portfolio to identify and invest in high-yielding ETPs across various asset classes.
• Composition: The ETF primarily invests in ETPs, including equity, fixed income, and alternative investment products.

Key Points:

• High current income potential through dividend and interest payments.
• Dynamic allocation strategy for adapting to changing market conditions.
• Experienced portfolio management team with a strong track record.
• Moderate liquidity and trading costs.

Risks:

• Volatility: DYLD can experience higher volatility than traditional bond funds due to its exposure to equities and alternative investments.
• Market Risk: The underlying assets held by the ETF can be affected by market fluctuations and economic factors.

Who Should Consider Investing:

DYLD is suitable for income-oriented investors seeking high current income and willing to accept a higher level of volatility.

Fundamental Rating Based on AI:

8/10. DYLD exhibits strong fundamentals with a diversified portfolio, experienced management, and a proven track record of performance. However, the relatively small market share and higher expense ratio compared to some competitors may be drawbacks for some investors.

Resources and Disclaimers:

• ETF Website: https://www.leadersharesetfs.com/fund/dyld
• Morningstar: https://www.morningstar.com/etfs/arcx/dyld/overview
• MarketWatch: https://www.marketwatch.com/investing/fund/dyld

Disclaimer: The information provided in this analysis is intended for general knowledge and informational purposes only and does not constitute financial advice. It is essential to conduct your own research and due diligence before making any investment decisions.

Please note that this information is current as of November 10, 2023. The ETF market is dynamic, and the information presented may change over time.