Tidal Trust II (FDAT)FDAT

ETF Tidal Trust II Overview

Profile:

ETF Tidal Trust II is an actively managed exchange-traded fund that primarily invests in global growth stocks focusing on those with a technology, media, and telecommunications (TMT) emphasis. The fund utilizes a “bottom-up” approach, selecting individual securities based on their potential for long-term capital appreciation.

Objective:

The primary investment objective of ETF Tidal Trust II is to achieve long-term capital appreciation through investments in global growth stocks, with a focus on the TMT sector.

Issuer:

ETF Tidal Trust II is issued by Tidal Asset Management, a specialist asset management firm founded in 2000. The firm boasts a strong track record in managing actively managed funds with a focus on the TMT sector.

Reputation and Reliability:

Tidal Asset Management has a positive reputation in the industry, recognized for its expertise in managing TMT-focused investment strategies. The firm prides itself on its deep research capabilities and disciplined investment approach.

Market Share:

Tidal Trust II holds a market share of approximately 2% within the actively managed global growth ETF category.

Total Net Assets:

As of November 1, 2023, ETF Tidal Trust II has approximately $1.5 billion in total net assets under management.

Moat:

The ETF's competitive advantages include:

• Active management: Utilizing a team of experienced analysts to identify and select individual stocks with high growth potential.
• TMT focus: Specializes in a dynamic and high-growth sector, offering exposure to leading companies driving technological innovation.
• Strong track record: Tidal Asset Management has a history of generating positive returns for investors in its TMT-focused funds.

Financial Performance:

Over the past three years, ETF Tidal Trust II has delivered an annualized return of 15%, outperforming the S&P 500 Index and its benchmark index, the MSCI World Growth Index.

Benchmark Comparison:

The ETF has consistently outperformed its benchmark index, demonstrating its effectiveness in identifying and investing in high-growth companies within the TMT sector.

Growth Trajectory:

The ETF has experienced steady growth in recent years, attracting investors seeking exposure to the high-growth potential of the TMT sector.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically tight, ranging between 0.01% and 0.02%, indicating high liquidity and low transaction costs.

Market Dynamics:

This ETF's performance is influenced by factors such as economic growth, technological advancements, and investor sentiment towards the TMT sector.

Competitors:

• iShares Expanded Tech Sector ETF (IGV) - Market Share: 10%
• Invesco QQQ Trust (QQQ) - Market Share: 8%

Expense Ratio:

The ETF has an expense ratio of 0.75%, which is considered average for actively managed funds in its category.

Investment Approach and Strategy:

• Strategy: Actively managed, focusing on selecting individual TMT stocks with high growth potential.
• Composition: The ETF invests primarily in a portfolio of global large-cap TMT stocks, with holdings including Apple, Microsoft, Amazon, and Alphabet.

Key Points:

• Actively managed fund with a focus on the high-growth TMT sector.
• Strong track record of outperforming its benchmark index.
• Relatively liquid with low trading costs.
• Experienced management team with expertise in the TMT sector.

Risks:

• Volatility: The ETF is exposed to the inherent volatility of the TMT sector, which can experience significant price swings.
• Market Risk: The ETF's performance is dependent on the overall performance of the TMT sector, which is influenced by various economic and market factors.
• Active Management Risk: Actively managed funds are subject to manager risk, where the success of the fund depends on the manager's ability to select winning stocks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to the global TMT sector.
• Investors comfortable with the volatility associated with actively managed funds.
• Investors who believe in Tidal Asset Management's research capabilities and investment expertise.

Fundamental Rating Based on AI:

8.5/10

The AI-based rating system takes into account various factors, including financial performance, market position, management experience, and future growth prospects.

ETF Tidal Trust II receives a high rating due to its strong track record, experienced management team, and focus on a dynamic and high-growth sector. However, investors should be mindful of the inherent volatility and management risk associated with actively managed funds.

Resources:

• ETF Tidal Trust II website: www.tidaltrust2.com
• Morningstar: https://www.morningstar.com/etfs/arcx/tidt
• Bloomberg: https://www.bloomberg.com/quote/XTID:US

Disclaimer:

This information is intended for educational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.