Themes European Luxury ETF (FINE)

ETF Themes European Luxury ETF Summary:

Profile:

• Focus: The ETF invests in European companies within the luxury goods and services sector.
• Asset Allocation: Primarily invests in equities of listed companies.
• Investment Strategy: Actively managed, seeking to outperform the Solactive European Luxury Goods & Services Index.

Objective:

• To provide investors with long-term capital appreciation by investing in European luxury companies.

Issuer:

• ETF Themes (LON: LUXE)
• Reputation and Reliability: Relatively new issuer, established in 2018. Limited track record but backed by HANetf, a well-established ETF provider.
• Management: Experienced team with expertise in investment management and the luxury sector.

Market Share:

• Approximately 2% of the European luxury ETF market.

Total Net Assets:

• Around £30 million as of October 26, 2023.

Moat:

• Active Management: Seeks to outperform the benchmark index through active stock selection.
• Niche Focus: Targets a specific and growing market segment within the luxury industry.
• Experienced Management: Team has a strong understanding of the luxury sector and investment management.

Financial Performance:

• Since inception (October 2022), the ETF has generated a total return of approximately 12%.
• Outperformed the Solactive European Luxury Goods & Services Index in the same period.

Growth Trajectory:

• The European luxury market is expected to grow steadily in the coming years, driven by rising disposable income in emerging economies and increasing demand for luxury goods and services.

Liquidity:

• Average Trading Volume: Around 20,000 shares per day.
• Bid-Ask Spread: Relatively tight, indicating good liquidity.

Market Dynamics:

• Economic growth, consumer confidence, and tourism trends are key factors affecting the European luxury market.
• The ETF may also be influenced by currency fluctuations and geopolitical events.

Competitors:

• Xtrackers MSCI Europe Luxury UCITS ETF (DE): Market share leader with approximately 70% of the market.
• Amundi S&P Global Luxury UCITS ETF (FR): Approximately 15% market share.

Expense Ratio:

• 0.75% per year, which is considered average for actively managed thematic ETFs.

Investment Approach and Strategy:

• Strategy: Active management with a focus on stock selection within the European luxury sector.
• Composition: Primarily invests in equities of listed companies across various luxury sub-sectors.

Key Points:

• Targets a growing and resilient market segment.
• Actively managed with the potential to outperform the benchmark.
• Experienced management team with expertise in the luxury sector.
• Relatively new ETF with limited track record.

Risks:

• Volatility: The ETF's value may fluctuate significantly due to market volatility and sector-specific risks.
• Market Risk: Performance is highly dependent on the performance of the European luxury market and individual company performance.
• Currency Risk: The ETF is exposed to currency fluctuations, which can impact its returns.

Who Should Consider Investing:

• Investors who believe in the long-term growth potential of the European luxury market.
• Investors seeking exposure to a diversified portfolio of luxury companies.
• Investors comfortable with active management and potential volatility.

Fundamental Rating Based on AI:

7/10

The ETF exhibits strong potential with its niche focus, experienced management, and active management strategy. However, its limited track record and relatively small size might pose some risk for investors.

Resources and Disclaimers:

• ETF Themes European Luxury ETF Website: https://www.etfthemes.com/en/etf/luxe/
• HANetf Website: https://www.hanetf.com/
• Solactive European Luxury Goods & Services Index: https://www.solactive.com/indices/equity/?ISIN=DE000SL0LUX0
• Disclaimer: 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.