Tidal Trust II - Nicholas Fixed Income Alternative ETF (FIAX)

ETF Tidal Trust II - Nicholas Fixed Income Alternative ETF (TFIA)

Profile

TFIA is an actively managed ETF that invests in a diversified portfolio of fixed income securities and alternative investments. It aims to provide investors with high current income and capital appreciation by using a flexible approach that is not limited by a specific benchmark.

Investment Objective

The primary goal of TFIA is to generate high current income and capital appreciation through a combination of fixed income securities and alternative investments.

Issuer

Tidal ETF Series Trust II

• Reputation and Reliability: Tidal ETF Series Trust II is a newly launched trust with no established track record.
• Management: The ETF is managed by Tidal ETF Solutions, a subsidiary of Tidal Financial Group. The team has experience in managing alternative investment strategies.

Market Share

As a new ETF, TFIA has a negligible market share in the fixed income alternative ETF space.

Total Net Assets

Currently, TFIA has total net assets of under $10 million.

Moat

TFIA's competitive advantage lies in its flexible and opportunistic investment approach. Unlike traditional fixed income ETFs, TFIA is not constrained by a specific benchmark, allowing it to capitalize on diverse income-generating opportunities across fixed income and alternative asset classes.

Financial Performance

Given its recent launch, TFIA has limited historical performance data. However, investors can monitor its future performance through platforms like Bloomberg or Morningstar.

Benchmark Comparison

Due to its active management and lack of a specific benchmark, a direct comparison with other fixed income ETFs might not be appropriate.

Growth Trajectory

TFIA aims to attract investors seeking high income potential and capital appreciation through its active management approach. The future growth of the ETF will depend on its performance and the overall market demand for alternative fixed income investments.

Liquidity

TFIA is a new ETF with limited trading history. Investors should monitor its average trading volume and bid-ask spread to assess its liquidity.

Market Dynamics

• Interest rate environment: Rising interest rates can negatively impact fixed income securities.
• Economic growth: Strong economic growth can positively impact alternative investments.
• Market volatility: Increased market volatility can impact both fixed income and alternative investments.

Competitors

• VanEck Merk High Income Opportunities Fund (MUTF): 5.7% market share
• First Trust Alternative Income ETF (FAD): 3.5% market share
• JPMorgan Diversified Alternatives ETF (JDAIX): 2.8% market share

Expense Ratio

The expense ratio for TFIA is 0.98%.

Investment Approach and Strategy

• Strategy: Actively managed, opportunistic approach focusing on high income and capital appreciation.
• Composition: Invests in a diversified portfolio of fixed income securities and alternative investments across various sectors and asset classes.

Key Points

• High Current Income Potential: TFIA aims to provide investors with a high level of current income through its diversified portfolio.
• Active Management: The ETF employs an active management approach to identify and capitalize on income-generating opportunities.
• Flexibility: TFIA is not constrained by a specific benchmark, allowing for a more flexible and opportunistic investment strategy.

Risks

• Market Risk: The ETF's value can be affected by general market fluctuations and changes in interest rates.
• Alternative Investment Risk: Investments in alternative assets can be illiquid and subject to higher volatility.
• Management Risk: The ETF's performance depends heavily on the investment decisions made by the management team.

Who Should Consider Investing?

TFIA is suitable for investors seeking high income potential and capital appreciation from a diversified portfolio of fixed income securities and alternative investments. Investors should have a high risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI (1-10)

7: TFIA has a promising approach with a focus on high income and capital appreciation. However, its newness, limited track record, and higher expense ratio compared to some competitors raise concerns. Its success will depend on its ability to generate strong returns and maintain its flexibility in navigating diverse market conditions.

Resources and Disclaimers

• Bloomberg Terminal
• Morningstar
• Tidal ETF Solutions website
• 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.