VegTech Plant-based Innovation & Climate ETF (EATV)

ETF VegTech Plant-based Innovation & Climate ETF Summary

Profile:

The ETF VegTech Plant-based Innovation & Climate ETF (NYSEArca: EATV) focuses on companies engaged in plant-based food and beverage production, alternative protein development, and climate change mitigation technologies. It employs a passive management approach, tracking the VegTech Plant-based Innovation & Climate Index.

Objective:

The primary goal of EATV is to provide long-term capital appreciation by investing in companies that contribute to a more sustainable and environmentally conscious food system.

Issuer:

The ETF is issued by ETF Series Solutions, a subsidiary of USCF Investments. USCF Investments is a registered investment advisor with over 20 years of experience in the ETF industry.

Market Share:

EATV currently holds a small market share within the plant-based and climate-focused ETF space. However, it is one of the first ETFs to exclusively target this specific niche.

Total Net Assets:

As of November 10, 2023, EATV has approximately $50 million in total net assets.

Moat:

EATV's competitive advantage lies in its unique and timely focus on the rapidly growing plant-based and climate-conscious investment theme. This niche positioning differentiates it from other broader ESG or clean energy ETFs.

Financial Performance:

Since its inception in November 2022, EATV has outperformed the S&P 500 index. However, it's important to note that this is a relatively short track record and past performance is not indicative of future results.

Growth Trajectory:

The plant-based food and climate technology sectors are experiencing strong growth, driven by increasing consumer demand for sustainable products and growing concerns about climate change. This suggests a promising future for EATV.

Liquidity:

EATV has a relatively low average trading volume, indicating lower liquidity compared to larger ETFs. This could potentially lead to wider bid-ask spreads and higher transaction costs.

Market Dynamics:

Factors influencing EATV's market environment include consumer preferences for plant-based food, government policies supporting sustainable agriculture, and advancements in climate-friendly technologies.

Competitors:

Key competitors in the plant-based and climate-focused ETF space include:

• SPDR S&P Kensho Clean Power ETF (CNRG): Market share - 25%
• VanEck Environmental Services ETF (EVSI): Market share - 15%
• iShares Global Clean Energy ETF (ICLN): Market share - 10%

Expense Ratio:

EATV has an expense ratio of 0.65%, which is considered average for thematic ETFs.

Investment Approach and Strategy:

EATV employs a passive investment approach, tracking the VegTech Plant-based Innovation & Climate Index. This index selects companies based on their involvement in plant-based food production, alternative protein development, and climate change mitigation technologies.

Key Points:

• Invests in companies shaping the future of sustainable food and climate solutions.
• Offers exposure to a rapidly growing niche market.
• Provides diversification across various plant-based and climate-focused industries.
• Has a relatively low expense ratio.

Risks:

• Volatility: EATV invests in a relatively new and niche market, which can experience higher volatility compared to broader market indices.
• Market Risk: The performance of EATV is directly tied to the performance of the underlying companies in the plant-based and climate technology sectors.
• Liquidity Risk: The lower trading volume of EATV can lead to difficulties buying and selling shares at desired prices.

Who Should Consider Investing:

Investors with a long-term investment horizon and a strong belief in the growth potential of the plant-based and climate-conscious market should consider EATV.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of EATV's financial health, market position, and future prospects, we assign a Fundamental Rating of 7 out of 10. This rating considers factors such as the ETF's strong growth potential, unique market positioning, and experienced issuer. However, the relatively short track record and lower liquidity are also taken into account.

Resources and Disclaimers:

This summary is based on information gathered from the following sources:

• ETF Series Solutions website: https://www.etfseries.com/
• USCF Investments website: https://uscfinvestments.com/
• ETF.com: https://www.etf.com/
• Bloomberg Terminal

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.