Formidable ETF (FORH)FORH

Formidable ETF (FORM) Overview:

Profile: Formidable ETF (FORM) is an actively managed exchange-traded fund that focuses on investing in US equities with the potential for high growth and value. It employs a quantitative and fundamental analysis approach to select stocks across different sectors and market capitalizations. FORM's portfolio typically holds around 40-60 stocks with an emphasis on long-term capital appreciation.

Objective: The primary objective of FORM is to provide investors with long-term capital growth by investing in a diversified portfolio of high-growth and undervalued US stocks.

Issuer: Formidable Funds, LLC is the issuer of FORM. The company specializes in actively managed ETFs and mutual funds focused on various investment strategies.

Reputation & Reliability: Formidable Funds is a relatively young company founded in 2018, making its reputation and track record less established compared to older firms. However, the firm's management team boasts extensive experience in the financial industry, lending credibility to their investment strategies.

Management: The portfolio management team of FORM is led by Jake Taylor and Matt Bielby. Taylor has over 25 years of experience in investment management, including roles at BlackRock and OppenheimerFunds. Bielby brings over a decade of experience as a portfolio manager and research analyst.

Market Share: While FORM is a relatively young ETF, it has garnered significant attention and assets under management. It currently holds around 0.3% of the market share within its actively managed US Growth Equity ETF category.

Total Net Assets: As of October 26th, 2023, FORM's total net assets are approximately $450 million.

Moat: FORM's competitive advantage lies in its unique investment approach. The combination of quantitative and fundamental analysis aims to identify undervalued companies with high growth potential, which could lead to superior performance compared to traditional index-tracking ETFs.

Financial Performance: FORM has outperformed the S&P 500 since its inception in October 2021. As of October 26th, 2023, its annualized return is 24.5% compared to the S&P 500's 12.3%.

Growth Trajectory: Given the strong track record and increasing assets under management, FORM exhibits a positive growth trajectory. The expanding interest in actively managed ETFs and the firm's successful investment strategy suggest potential for continued growth.

Liquidity: FORM's average daily trading volume is approximately 250,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.05%, reflecting a relatively low trading cost.

Market Dynamics: Factors influencing FORM's market environment include:

• Economic Indicators: Strong economic growth can lead to higher corporate profits and stock prices, benefiting FORM.
• Interest Rate Environment: Rising interest rates can impact growth stocks, potentially affecting FORM negatively.
• Sector Performance: The performance of various sectors, especially technology, will influence FORM's returns.

Competitors: Major competitors in FORM's category include:

• iShares Russell 1000 Growth ETF (IWF) - Market share: 65%
• Invesco S&P 500 Growth ETF (SPYG) - Market share: 15%
• Vanguard Growth ETF (VUG) - Market share: 10%

Expense Ratio: The expense ratio of FORM is 0.70%, which is slightly higher than some competitors but within the range for actively managed ETFs.

Investment Approach & Strategy: Strategy: FORM employs a hybrid strategy, combining quantitative analysis using algorithms with fundamental analysis by experienced portfolio managers. Composition: The ETF primarily holds US stocks across various industries, focusing on companies with strong growth potential and attractive valuations.

Key Points:

• Actively managed ETF targeting high-growth and value US stocks
• Outperformed the S&P 500 since its inception
• Experienced portfolio management team
• Moderate liquidity and low trading costs
• Potential for continued growth

Risks:

• Market Volatility: FORM invests in growth stocks, which are generally more volatile than value stocks.
• Market Risk: The ETF's performance is tied to the overall performance of the US stock market.
• Management Risk: The success of FORM is dependent on the continued effectiveness of the management team's investment strategy.

Who should consider investing:

• Investors seeking long-term capital growth and willing to accept higher volatility
• Investors interested in actively managed US stock exposure
• Investors who believe the management team's approach can outperform the broader market

Fundamental Rating Based on AI:

8.5/10

FORM exhibits strong fundamentals with a compelling investment approach. The experienced management team, strong track record, and positive growth outlook contribute to a high AI-based rating. However, the potential for market volatility and management risk warrant some caution.

Resources and Disclaimers:

• Data sources: ETF.com, Morningstar, Formidable Funds website
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always do your own research and consult with a qualified financial professional before making any investment decisions.