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

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

Profile:

FMCX is an actively managed ETF that invests in a concentrated portfolio of large-cap U.S. equities. The fund seeks to outperform the S&P 500 Index by investing in companies with strong competitive advantages, growth potential, and experienced management teams.

Objective:

FMCX's primary objective is to achieve long-term capital appreciation through active stock selection and portfolio management.

Issuer:

FMCX is issued by Northern Lights Fund Trust IV, an independent trust company. The fund is advised by FMC Investment Management, LLC, a registered investment advisor with over 25 years of experience managing equity portfolios.

Market Share:

FMCX has a small market share in the large-cap equity ETF space, with approximately $115 million in total net assets.

Total Net Assets:

As of November 3, 2023, FMCX has $114.89 million in total net assets.

Moat:

FMCX's competitive advantage lies in its active management approach, experienced portfolio managers, and concentrated portfolio. This allows the fund to identify and invest in undervalued companies with high growth potential, potentially outperforming a passively managed index.

Financial Performance:

Since its inception in May 2023, FMCX has delivered a return of 5.34%, outperforming the S&P 500 Index by 2.14%.

Growth Trajectory:

FMCX is a relatively new fund, and its long-term growth trajectory is uncertain. However, the fund's focus on high-growth, undervalued companies could lead to strong returns in the future.

Liquidity:

FMCX has an average daily trading volume of approximately 30,000 shares. The bid-ask spread is typically tight, indicating high liquidity.

Market Dynamics:

The market for large-cap equities is influenced by various factors, including:

• Economic growth
• Interest rates
• Inflation
• Investor sentiment

Competitors:

• iShares Core S&P 500 ETF (IVV) - Market share: 24.7%
• Vanguard S&P 500 ETF (VOO) - Market share: 20.4%
• SPDR S&P 500 ETF (SPY) - Market share: 14.7%

Expense Ratio:

FMCX's expense ratio is 0.85%.

Investment Approach and Strategy:

• Strategy: Active stock selection of large-cap U.S. companies
• Composition: Primarily U.S. equities, with a focus on growth stocks

Key Points:

• Actively managed ETF with a concentrated portfolio
• Seeks to outperform the S&P 500 Index
• Led by an experienced investment team
• High liquidity
• Relatively new fund with limited track record

Risks:

• Market risk: The underlying investments are subject to market fluctuations and could decline in value.
• Concentration risk: The portfolio is concentrated in a limited number of holdings, increasing volatility.
• Management risk: The fund's performance is heavily dependent on the investment team's skill and ability to select winning stocks.

Who Should Consider Investing:

FMCX is suitable for investors seeking long-term capital appreciation through active stock selection. This fund is best suited for investors with a higher risk tolerance and a longer investment horizon.

Fundamental Rating Based on AI:

Based on an AI analysis of FMCX's financial health, market position, and future prospects, we assign a fundamental rating of 7 out of 10. The fund's active management approach, experienced portfolio managers, and focus on high-growth companies are promising. However, its limited track record and small market share introduce some uncertainty.

Resources:

• FMC Excelsior Focus Equity ETF Website: https://fmcexcelsior.com/
• Morningstar Fund Report: https://www.morningstar.com/etfs/arch/fm/fm/profile.html
• Yahoo Finance: https://finance.yahoo.com/quote/FMCX/

Disclaimer: The information provided is for educational purposes only and should not be considered investment advice. Investors should conduct their due diligence and consult with a financial professional before making any investment decisions.