Northern Lights Fund Trust IV - FMC Excelsior Focus Equity ETF (FMCX)

Overview

The FMC Excelsior Focus Equity ETF (FOEQ) is an actively managed fund that seeks long-term capital appreciation by investing in a concentrated portfolio of U.S. equities. It focuses on identifying companies with strong fundamentals, sustainable competitive advantages, and attractive growth prospects.

Reputation and Reliability

Northern Lights Fund Trust IV provides a platform for various investment managers to launch and manage ETFs. They are known for offering operational and compliance support to their partners.

Management Expertise

FMC Excelsior Capital Management is responsible for the investment decisions. Their team brings experience in fundamental research and portfolio construction.

Goal

Seeks long-term capital appreciation.

Investment Approach and Strategy

Strategy: Actively managed, concentrated portfolio of U.S. equities.

Composition Primarily U.S. stocks selected based on fundamental analysis.

Market Share: Relatively small market share due to its specialized focus and active management approach.

Total Net Assets (AUM): 19216375

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• Invesco QQQ Trust (QQQ)
• iShares Core S&P 500 ETF (IVV)

Competitive Landscape

The ETF market is highly competitive, dominated by large passive index funds. FOEQ differentiates itself through active management and a focus on high-quality growth companies, but faces the challenge of outperforming the broader market after fees. Advantages include the potential for higher returns and downside protection; disadvantages include higher fees and tracking error.

Historical Performance: Historical financial performance data needs to be sourced. Returns will vary based on market conditions and the fund's stock selections.

Benchmark Comparison: Benchmark comparison would involve comparing FOEQ's performance against the S&P 500 or a similar large-cap growth index.

Expense Ratio: 0.79

Average Trading Volume

Average trading volume data is not available but is likely moderate due to the fund's size.

Bid-Ask Spread

The bid-ask spread will vary based on market conditions but is expected to be moderate, reflecting the fund's liquidity.

Market Environment Factors

The performance of FOEQ is influenced by overall economic growth, interest rates, and investor sentiment towards growth stocks. Sector-specific factors also play a role, depending on the fund's allocations.

Growth Trajectory

FOEQ's growth trajectory depends on its ability to attract assets and consistently outperform its benchmark through its stock selection process. Changes to its strategy and holdings would be based on market analysis and investment opportunities.

Competitive Edge

FOEQ's competitive advantage lies in its active management approach, which allows it to select stocks based on in-depth fundamental research and identify companies with sustainable competitive advantages. The concentrated portfolio approach allows for potentially higher returns, but it also increases the risk. The fund seeks to outperform traditional market indexes through its focus on identifying high-quality growth companies. The fund's experienced management team contributes to its ability to deliver strong long-term results.

Volatility

Volatility can be assessed by examining the fund's historical returns and comparing them to its benchmark. The concentrated nature of the portfolio may lead to higher volatility compared to broad market indexes.

Market Risk

FOEQ is exposed to market risk, which is the risk that the overall stock market declines, as well as sector-specific risk, depending on its allocations. There is also concentration risk, as the portfolio is not widely diversified.

Ideal Investor Profile

The ideal investor for FOEQ is one seeking long-term capital appreciation and comfortable with higher risk levels due to the concentrated nature of the portfolio and active management style. The investor should also believe in the manager's ability to outperform the market.

Market Risk

FOEQ is best suited for long-term investors who are willing to tolerate higher levels of volatility in exchange for the potential for higher returns. It is less suitable for passive index followers or risk-averse investors.

The FMC Excelsior Focus Equity ETF (FOEQ) is an actively managed fund focused on long-term capital appreciation through a concentrated portfolio of U.S. equities. It aims to identify companies with strong fundamentals, sustainable competitive advantages, and attractive growth prospects. Its concentrated approach and active management differentiate it from passive index funds but also introduce higher risk and fees. Suitable for investors seeking growth and comfortable with volatility, FOEQ's success hinges on the manager's stock selection abilities.

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Data Sources:

• ETF.com
• Morningstar
• FMC Excelsior Capital Management Website

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be made based on your own research and consultation with a financial advisor. Market share data is estimated and may not be precise. Past performance is not indicative of future results.