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

Overview

The Two Roads Shared Trust - LeaderShares Dynamic Yield ETF is designed to provide investors with access to companies that exhibit strong dividend-paying characteristics and potential for capital appreciation. It focuses on a dynamic approach to identify high-yield opportunities within the equity market, aiming for a balance between income generation and growth.

Reputation and Reliability

Two Roads Shared Trust is a relatively new entrant in the ETF space, focusing on innovative and niche strategies. LeaderShares acts as the sub-advisor, bringing expertise in dynamic investment management.

Management Expertise

LeaderShares, the sub-advisor, is known for its expertise in developing and managing quantitative and factor-based investment strategies. The management team possesses experience in identifying and exploiting market inefficiencies.

Goal

To seek long-term capital appreciation and current income by investing in a diversified portfolio of equity securities of companies that have demonstrated a history of, or are expected to demonstrate, dividend growth and potential for capital appreciation.

Investment Approach and Strategy

Strategy: The ETF employs a dynamic strategy that aims to identify equity securities with attractive dividend yields and growth potential. It is not strictly an index-tracking ETF but rather an actively managed strategy that seeks to outperform.

Composition The ETF primarily holds equities, focusing on companies with strong dividend profiles. The allocation can be dynamic, adjusting based on market conditions and the identified opportunities for yield and growth.

Market Share: As a niche ETF, its market share is likely small compared to broader market ETFs. Specific data for this exact ETF's market share in its specific segment may be limited or proprietary.

Total Net Assets (AUM): Data on Total Net Assets (AUM) fluctuates. As of recent filings, the AUM is approximately $16.7 million. (Note: This figure is subject to change.)

Key Competitors

• WisdomTree U.S. High Dividend Fund (DHS)
• Vanguard High Dividend Yield ETF (VYM)
• Schwab U.S. Dividend Equity ETF (SCHD)

Competitive Landscape

The high-dividend ETF space is competitive, dominated by large, established providers with significant AUM and brand recognition. The Two Roads Shared Trust - LeaderShares Dynamic Yield ETF, being a newer and more specialized product, faces the challenge of building awareness and attracting assets against these giants. Its advantage may lie in its more dynamic and potentially niche approach to yield and growth, which could appeal to investors seeking differentiated strategies. However, its smaller size can also lead to lower liquidity and higher bid-ask spreads compared to its larger peers.

Historical Performance: As of recent data, the ETF's historical performance shows mixed results. Over the past year, it has experienced declines. Longer-term data is limited due to its relatively recent inception. (Specific numerical data for graphical representation would require accessing real-time financial data APIs.)

Benchmark Comparison: The ETF's performance relative to its benchmark (which may be a broad dividend index or a custom benchmark) needs to be evaluated based on specific reporting periods. It aims to outperform a passive dividend strategy.

Expense Ratio: 0.59

Average Trading Volume

The average trading volume for the Two Roads Shared Trust - LeaderShares Dynamic Yield ETF is relatively low, indicating lower liquidity compared to more established ETFs.

Bid-Ask Spread

The bid-ask spread for this ETF tends to be wider than for larger, more liquid ETFs, reflecting its smaller asset base and trading volume.

Market Environment Factors

The ETF is influenced by factors affecting the broader equity market, interest rate policies, and investor sentiment towards dividend-paying stocks. Current economic conditions, such as inflation and potential recessions, can impact the attractiveness of yield-focused investments. Sector performance within the equity market also plays a significant role.

Growth Trajectory

The ETF's growth trajectory will depend on its ability to attract new assets and generate competitive returns. Changes in strategy or holdings would be driven by the sub-advisor's assessment of market opportunities and shifts in company fundamentals related to dividends and growth.

Competitive Edge

The ETF's primary competitive edge lies in its 'dynamic yield' strategy, which seeks to go beyond static dividend selection by incorporating a forward-looking approach to identifying companies with sustainable and growing dividend potential alongside capital appreciation. This active management by LeaderShares aims to adapt to market shifts, potentially offering a more nuanced approach than traditional dividend ETFs. Its niche focus may attract investors looking for strategies not widely replicated by larger providers.

Volatility

The ETF's historical volatility is a key metric to assess. Given its focus on equities, it is subject to market fluctuations. Detailed volatility metrics would be derived from its historical price movements.

Market Risk

The ETF is exposed to market risk, including the risk of equity price declines, interest rate risk affecting dividend stock valuations, and sector-specific risks if its holdings become concentrated in certain industries. The dynamic nature of its strategy also introduces selection risk, where the choices made by the sub-advisor may not outperform.

Ideal Investor Profile

The ideal investor for this ETF is one seeking a combination of income generation and capital appreciation, with an understanding of equity market risks. Investors who are looking for dividend-paying stocks but also want exposure to potential growth, and who are comfortable with a more actively managed, dynamic approach, would be suitable.

Market Risk

This ETF may be best suited for long-term investors who are focused on building a portfolio that generates income and grows over time. It might also appeal to active traders who believe in the efficacy of the dynamic yield strategy, but it is not primarily designed for passive index replication.

The Two Roads Shared Trust - LeaderShares Dynamic Yield ETF (YLDY) aims to provide investors with a blend of income and growth through a dynamic selection of dividend-paying equities. Its strategy seeks to identify companies with robust dividend prospects and capital appreciation potential. While it operates in a competitive landscape dominated by larger ETFs, its unique dynamic approach and niche focus could appeal to specific investor segments. Investors should be aware of its relatively low AUM and average trading volume, which can impact liquidity.

Data Sources:

• ETF Provider Websites (Two Roads Shared Trust, LeaderShares)
• Financial Data Aggregators (e.g., ETF.com, Morningstar)

Disclaimers:

This information is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual financial circumstances and consultation with a qualified financial advisor. Data on AUM, performance, and trading volume are subject to change.