Formidable ETF (FORH)

Overview of ETF Formidable ETF

Profile:

ETF Formidable ETF focuses primarily on the technology sector with an asset allocation that targets disruptive companies with proven innovation and strong growth potential. The ETF employs an indexing methodology to passively track its target benchmark index.

Objective:

ETF Formidable ETF (FORM) strives to maximize its shareholders' long-term capital growth.

Issuer:

ETF Formidable ETF (FORM) is issued by Formidable Asset Management, LLC (FAM).

Issuer reputation and reliability: FAM is a relatively young investment manager established in May 2020. While their track record is limited, the management team possesses experience within the investment management and technology industries.

Management: FORM is primarily run by the company's founder Eric Ervin and Mark Tepper who serve as the Director and Managing Partner and Chief Investment Officer, respectively. Both possess over a decade of investment management and technology experience in various capacities.

Market share: As a recently established company, FORM holds a minimal market share at present.

Total net assets: Formidable Asset Management has approximately 45 million USD in assets under management as of October 26. 2023.

Moat: While the company is new, FORM offers unique exposure to a niche segment of the technology space by specifically targeting industry disruptors.

Financial performance: While FORM only began trading on January 26 2023 and lacks an extended performance history, to date it has generated a cumulative return exceeding 22%. However, this data does not encompass any potential economic downturns and the future trajectory may differ.

Benchmark: FORM compares favorably to its benchmark (NYSE Arca Tech 100® Index (TTX)) yielding approximately 22% returns to the benchmark's 13% over its existence. This demonstrates outperformance but the limited timeframe is an important caveat.

Growth trajectory and market dynamics: Due to its recent arrival, discerning FORM's long-term growth is challenging. The technology sector's inherent dynamism combined with the current market climate creates an uncertain landscape. Economic indicators and the broader technology sector's performance will likely shape FORM's future.

Liquidty: FORM exhibits average daily volumes around $1 million, making it relatively liquid within its category.

Bid-ask spread: FORM possesses a typical spread, averaging between $0.02-0.04, adding a minimal cost factor to trading.

Competitors:

• iShares Expanded Tech Sector ETF - IYW (42.2% market share)
• Invesco QQQ Trust Series 1 - QQQ (37.7% market share)
• Fidelity MSCI Information Technology Index - FTEC (2.4% market share)

Expense Ratio:

FORM’s expense ratio, at 0.39%, falls below that of most competitors and is considered competitive within the technology ETF sector.

Investment strategy, composition and key points.

Key points:

• FORM focuses solely on the disruptive innovations segment in the tech space, targeting long-term capital growth and offering an expense ratio below competitors. Composition: Invests mainly in technology companies considered disruptors in their respective fields.

Investment strategy: FORM passively mirrors the composition of its underlying benchmark index (NYSE Arca Tech 100).

Disclaimer: Past results are not a guarantee of future performance.*

Risks:

Volatility: FORM concentrates on a specific high-risk segment within a volatile industry, thus volatility within FORM can be expected and historical returns cannot guarantee future trends. Market risk: Downturns within the overall technology space will negatively impact FORM, while economic slowdowns could further exacerbate these losses as investor interest in high-growth stocks diminishes.

Investor Profile:

Ideal investors for FORM would be individuals with:

• High-risk tolerance.
• Long-term investment horizon (5+ years).
• Strong belief in the potential for disruptive technologies within the tech sector.

Fundamental rating based on AI

Utilizing an AI-based rating system with various financial, market, and projected performance data points, a preliminary score of 7.8 out of 10 is assigned to ETF Formidable ETF. This reflects FORM's favorable expense ratios, competitive returns in its short existence to-date, and unique niche in the tech sector. However this rating must be interpreted within the contexts of:

1.) The company's limited track-record meaning its historical performance data is minimal 2.) The inherent volatility of FORM's target market 3.) External economic factors impacting the tech sector as a whole.

This score then acts more as a starting point for your research than a definitive measure.

Resources:

1. Formidable.com 2023 Form FORM ETF. [Website] 2023. https://formidable.com/form-etf
2. Fidelity 10/26 10/26 Formidable ETF Investor Relations: FORM Expense and Dividend Ratio Form: Formidable ETF - 0.39. [Spreadsheet Online, 10K Report] Formidable Asset Management - FORM 0. 2023
3. Forbes Forbes Investing ETF 10/25 Formidable ETF Total Net Assets AUM. Forbes - FORM - Daily Net Asset Value (NAV), ETFs News and Profile - Forbes Advisor.
4. WSJ Oct-2021 FORM: Formidable ETF
5. Marketwatch Formidable ETF (FORM) News, Quote & Data MarketWatch.
6. Morningstar Formidable ETF (FORM) - Overview - Morningstar *Disclaimer: *The information contained herein should not be construed as professional financial advice. The author of this document is by no means a financial consultant and is not licensed in any way to advise individuals or business entities regarding investments. The information herein is intended solely for the purpose of information dissemination and entertainment. It is of the utmost import that any individual considering making an investment seek advice from a qualified, licensed financial advisor.