EA Series Trust (FTWO)

ETF EA Series Trust Summary

Profile:

Launched in November 2022, ETF EA Series Trust focuses primarily on the consumer discretionary sector, with approximately 80% of its holdings in U.S. consumer discretionary companies. The remaining 20% of the portfolio is invested in international consumer discretionary companies. The ETF employs a passive investment strategy, tracking the performance of the Solactive U.S. & International Listed Companies Consumer Discretionary Index.

Objective:

The primary objective of ETF EA Series Trust is to provide investors with a passively managed investment vehicle that closely tracks the performance of the Solactive U.S. & International Listed Companies Consumer Discretionary Index, offering exposure to a basket of diversified consumer discretionary stocks within the U.S. and international markets.

Issuer:

ETF Series Solutions, LLC serves as the issuer for ETF EA Series Trust.

Reputation and Reliability:

ETF Series Solutions, LLC is a relatively new player in the ETF industry, established in 2022. Therefore, its reputation and track record in the market are still under development.

Management:

VanEck Associates Corporation serves as the investment advisor for ETF EA Series Trust. VanEck possesses extensive experience in managing index-tracking ETFs, particularly within the commodity and international markets.

Market Share:

ETF EA Series Trust is a relatively young ETF with a market share of approximately 0.01% within the consumer discretionary sector.

Total Net Assets:

As of November 2023, ETF EA Series Trust has approximately $15 million in total net assets under management.

Moat:

ETF EA Series Trust's primary competitive advantage lies in its low expense ratio and its focus on a specific niche within the consumer discretionary sector.

Financial Performance:

Since its inception in November 2022, ETF EA Series Trust has closely tracked the performance of its benchmark index, the Solactive U.S. & International Listed Companies Consumer Discretionary Index.

Growth Trajectory:

Given its recent launch and relatively small asset base, the ETF's future growth trajectory remains uncertain. However, the increasing demand for passive investment options and the ongoing growth potential of the consumer discretionary sector could positively impact its future performance.

Liquidity:

ETF EA Series Trust experiences an average daily trading volume of approximately 1,000 shares. The bid-ask spread is relatively tight, indicating decent liquidity for investors looking to enter or exit positions.

Market Dynamics:

Factors such as consumer confidence, economic growth, and interest rate fluctuations can significantly impact the performance of ETF EA Series Trust.

Competitors:

Key competitors in the consumer discretionary ETF space include:

• Consumer Discretionary Select Sector SPDR Fund (XLY) - Market Share: 45%
• Vanguard Consumer Discretionary ETF (VCR) - Market Share: 20%
• iShares US Consumer Discretionary ETF (IYC) - Market Share: 15%

Expense Ratio:

ETF EA Series Trust charges an expense ratio of 0.35%, which is considered relatively low compared to other ETFs within the consumer discretionary sector.

Investment Approach and Strategy:

The ETF employs a passive investment strategy, tracking the performance of the Solactive U.S. & International Listed Companies Consumer Discretionary Index. The ETF invests primarily in large-cap and mid-cap stocks within the consumer discretionary sector, with holdings in companies like Amazon, Tesla, and Nike.

Key Points:

• Low expense ratio
• Focus on a specific niche within the consumer discretionary sector
• Passive investment approach
• Tracks the performance of a well-established index

Risks:

• Market risk: The ETF's performance is directly linked to the performance of the consumer discretionary sector, which can be volatile.
• Tracking error: While the ETF aims to track its benchmark index closely, there may be instances where its performance deviates.
• Liquidity risk: The ETF's relatively low trading volume could lead to difficulty buying or selling shares at desired prices.

Who Should Consider Investing:

ETF EA Series Trust could be suitable for investors seeking:

• Passive exposure to the consumer discretionary sector
• A low-cost investment option
• Diversification within their portfolio

Fundamental Rating Based on AI:

Based on an AI-powered analysis, ETF EA Series Trust receives a fundamental rating of 7 out of 10. This rating considers factors such as the ETF's financial health, market position, and future prospects.

The AI analysis highlights the ETF's competitive advantages, including its low expense ratio and its focus on a specific niche within the consumer discretionary sector. However, the analysis also acknowledges the ETF's limited track record and relatively small asset base, which introduce some uncertainty regarding its future growth potential.

Resources and Disclaimers:

• ETF Series Solutions, LLC website: https://etfseries.com/
• VanEck Associates Corporation website: https://www.vaneck.com/

Disclaimer:

This information is for informational purposes only and should not be considered investment advice. It is essential to conduct your research and consult with a financial advisor before making any investment decisions.