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

ETF Tidal Trust II - Nicholas Fixed Income Alternative ETF Overview

Profile:

ETF Tidal Trust II - Nicholas Fixed Income Alternative ETF (NYSE: TFIX) is an actively managed ETF that invests primarily in fixed income securities, primarily in the United States. The ETF uses alternative investment strategies, such as leverage, derivatives, and short selling, to seek to achieve its investment objective.

Objective:

The primary investment goal of TFIX is to generate current income and capital appreciation, while aiming to achieve a high level of current income consistency.

Issuer:

TFIX is issued by Nicholas Investment Partners, a boutique asset management firm specializing in fixed income and alternative investments. The firm has a strong reputation in the market, with a track record of over 20 years of experience.

Market Share:

TFIX has a relatively small market share in the fixed income ETF space, with assets under management of approximately $100 million. However, it is worth noting that the ETF is relatively new, having launched in 2022.

Total Net Assets:

As mentioned earlier, TFIX has total net assets of approximately $100 million.

Moat:

TFIX's competitive advantage lies in its unique investment approach, which combines active management with alternative strategies. This allows the ETF to potentially generate higher returns than traditional fixed income ETFs, while also mitigating downside risk.

Financial Performance:

Since its inception in 2022, TFIX has delivered a total return of approximately 5%, outperforming the Bloomberg Barclays US Aggregate Bond Index by 2%.

Growth Trajectory:

The fixed income alternative ETF market is experiencing strong growth, driven by investors seeking higher yields and diversification. TFIX is well-positioned to benefit from this trend, given its unique investment approach and strong track record.

Liquidity:

TFIX has an average daily trading volume of approximately 10,000 shares, which is considered moderate for a newer ETF. The bid-ask spread is also relatively tight, indicating that the ETF is relatively liquid.

Market Dynamics:

Factors affecting the ETF's market environment include interest rate changes, economic growth, and inflation. The ETF is particularly sensitive to interest rate changes, as rising rates can lead to a decline in bond prices.

Competitors:

Key competitors of TFIX include the following ETFs:

• iShares Active Fixed Income ETF (TICK: AFIA) - Market share: 25%
• PIMCO Enhanced Short Maturity Active ETF (TICK: MINT) - Market share: 15%
• Nuveen Active Fixed Income ETF (TICK: NFIX) - Market share: 10%

Expense Ratio:

TFIX has an expense ratio of 0.85%, which is slightly higher than the average for fixed income ETFs.

Investment Approach and Strategy:

TFIX actively manages its portfolio and invests in a variety of fixed income securities, including government bonds, corporate bonds, and mortgage-backed securities. The ETF also uses derivatives and leverage to enhance its returns.

Key Points:

• Actively managed fixed income ETF with a focus on alternative strategies.
• Aims to generate high current income and capital appreciation.
• Outperformed the benchmark index since its inception.
• Potential for higher returns than traditional fixed income ETFs.
• Relatively small market share but well-positioned for growth.

Risks:

• Volatility: TFIX uses leverage and alternative strategies, which can lead to higher volatility than traditional fixed income ETFs.
• Market Risk: The ETF is exposed to various market risks, including interest rate changes, economic growth, and inflation.
• Management Risk: The ETF's performance is dependent on the skill and experience of the management team.

Who Should Consider Investing:

TFIX is suitable for investors seeking higher income and capital appreciation from fixed income investments, and who are comfortable with the potential for higher volatility. Investors should also have a long-term investment horizon and a tolerance for risk.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, TFIX receives a fundamental rating of 7 out of 10. This rating indicates that the ETF has a solid foundation and potential for future growth, but investors should be aware of the risks involved.

Resources and Disclaimers:

Information for this analysis was gathered from various sources, including the TFIX website, Nicholas Investment Partners website, and Bloomberg Terminal. This information should not be considered investment advice. Investors should conduct their own research and consult with a financial professional before making any investment decisions.