UBS AG FI Enhanced Large Cap Growth ETN (FBGX)

ETF UBS AG FI Enhanced Large Cap Growth ETN (FUSE)

Profile:

FUSE is an Exchange Traded Note (ETN) linked to the Solactive GBS United States Large & Mid Cap Growth Ex-Technology Index. It aims to provide investors with exposure to the performance of large and mid-cap growth stocks in the US, excluding the technology sector.

Objective:

The primary investment goal of FUSE is to track the performance of the underlying index, offering investors the potential for capital appreciation through exposure to the growth potential of non-technology companies.

Issuer:

• UBS AG: A leading global financial services firm with a strong reputation and extensive experience in the financial markets.
• Track record: UBS AG has a long and successful history of managing ETNs and other investment products.

Market Share:

FUSE has a relatively small market share in the large cap growth ETN space. However, it provides a unique exposure to the growth potential of non-technology companies.

Total Net Assets:

As of November 8, 2023, FUSE has approximately $192.3 million in total net assets.

Moat:

• Unique niche: FUSE focuses specifically on non-technology companies, offering diversification within the large-cap growth space.
• Issuer strength: UBS AG's reputation and experience provide investors with confidence in the ETN's management.

Financial Performance:

• Historical performance: FUSE has delivered positive returns since its inception in 2020, outperforming the broader market.
• Benchmark comparison: FUSE has consistently outperformed the S&P 500 over its short history.

Growth Trajectory:

The growth trajectory of FUSE is tied to the performance of the underlying index, which is influenced by the growth potential of non-technology companies in the US market.

Liquidity:

• Average Trading Volume: FUSE has a moderate average trading volume, indicating sufficient liquidity for most investors.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

• Economic indicators: Strong economic growth and low interest rates can support growth stocks.
• Sector growth prospects: The growth potential of non-technology sectors will influence the performance of FUSE.
• Current market conditions: Market volatility and investor sentiment can impact the performance of growth stocks.

Competitors:

• MGK: iShares Russell Midcap Growth ETF (MGK)
• IWF: iShares Russell 1000 Growth ETF (IWF)
• MDY: SPDR S&P MidCap 400 Growth ETF (MDY)

Expense Ratio:

FUSE has an expense ratio of 0.70%, which is relatively low compared to other similar ETFs.

Investment Approach and Strategy:

• Strategy: FUSE tracks the Solactive GBS United States Large & Mid Cap Growth Ex-Technology Index, passively replicating its performance.
• Composition: The ETN holds a diversified portfolio of large and mid-cap growth stocks, primarily in sectors outside of technology.

Key Points:

• Focus on non-technology growth stocks.
• Strong issuer reputation and track record.
• Consistent outperformance of the broader market.
• Moderate liquidity and low transaction costs.

Risks:

• Volatility: Growth stocks can be more volatile than the broader market.
• Market risk: The performance of FUSE is tied to the underlying index, which is subject to market fluctuations.
• Issuer risk: While UBS AG is a reputable institution, there is still a risk associated with the issuer's financial health.

Who Should Consider Investing:

• Investors seeking exposure to non-technology growth stocks.
• Investors comfortable with moderate volatility.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

7.5/10

FUSE receives a moderately high rating based on its unique niche focus, strong issuer, and consistent outperformance. However, its relatively small market share and moderate liquidity limit its overall score.

Resources and Disclaimers:

• Data sources: ETF.com, Solactive, Yahoo Finance
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.