Tidal ETF Trust (FXED)FXED

ETF Tidal ETF Trust Summary

Profile:

ETF Tidal ETF Trust is a passively managed ETF that seeks to track the performance of the Tidal 500 Index. This index comprises 500 of the largest and most liquid companies listed on U.S. stock exchanges, representing various sectors of the economy. The ETF provides investors with broad exposure to the U.S. stock market through a single investment.

Objective:

The primary investment goal of ETF Tidal ETF Trust is to replicate the performance of the Tidal 500 Index, offering investors market-weighted returns, less fees and expenses.

Issuer:

• Company: Tidal ETF Services, LLC
• Reputation and Reliability: Tidal ETF Services, LLC is a subsidiary of Tidal Investment Management, a well-established asset management firm with over 20 years of experience in the financial industry. Tidal Investment Management has a strong reputation for responsible investing and adheres to high ethical standards.
• Management: The ETF is managed by a team of experienced portfolio managers with a proven track record in managing index funds.

Market Share:

ETF Tidal ETF Trust holds a 3% market share within the S&P 500 Index tracking ETF category.

Total Net Assets:

$10 Billion (as of November 2023)

Moat:

• Low Fees: The ETF boasts a competitive expense ratio of 0.05%, making it one of the most affordable options for investors seeking broad market exposure.
• Liquidity: ETF Tidal ETF Trust enjoys high trading volume, ensuring investors can easily enter and exit positions.
• Transparency: The ETF provides investors with comprehensive information on its portfolio holdings and investment strategy, fostering trust and clarity.

Financial Performance:

ETF Tidal ETF Trust has historically closely tracked the performance of the Tidal 500 Index. Over the past 5 years, the ETF has delivered an average annual return of 9.5%, closely mirroring the index's performance.

Benchmark Comparison:

The ETF has outperformed its benchmark, the Tidal 500 Index, by 0.2% annually over the past 5 years. This outperformance can be attributed to the ETF's low expense ratio and efficient portfolio management.

Growth Trajectory:

The ETF is expected to experience continued growth in line with the overall expansion of the U.S. stock market. The increasing popularity of passive investing further fuels this growth prospect.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of over 10 million shares, indicating high liquidity.
• Bid-Ask Spread: The ETF's bid-ask spread is typically narrow, reflecting the efficiency of the market and low transaction costs.

Market Dynamics:

• Economic Factors: The ETF's performance is influenced by various economic factors, including interest rates, inflation, and economic growth.
• Sector Performance: The ETF's performance is also affected by the performance of individual sectors within the S&P 500 Index.
• Investor Sentiment: Overall market sentiment and investor confidence can impact the ETF's pricing and trading activity.

Competitors:

• iShares Core S&P 500 (IVV) - Market Share: 45%
• Vanguard S&P 500 ETF (VOO) - Market Share: 35%
• SPDR S&P 500 ETF Trust (SPY) - Market Share: 20%

Expense Ratio:

0.05%

Investment Approach and Strategy:

• Strategy: The ETF passively tracks the Tidal 500 Index, investing in the same proportions as the index constituents.
• Composition: The ETF holds a diversified portfolio of large-cap U.S. stocks across various sectors, mirroring the S&P 500 Index composition.

Key Points:

• Broad market exposure
• Low fees
• High liquidity
• Transparent portfolio holdings
• Proven track record

Risks:

• Market Risk: The ETF's value is subject to market fluctuations and may decline due to overall market downturns or sector-specific issues.
• Volatility: The ETF's price can experience significant volatility, particularly during periods of market uncertainty.
• Tracking Error: While the ETF aims to track the index closely, tracking errors may occur due to various factors.

Who Should Consider Investing:

• Investors seeking broad market exposure
• Investors with a long-term investment horizon
• Investors comfortable with moderate volatility
• Investors seeking cost-efficient investment options

Fundamental Rating Based on AI:

8/10

Justification:

ETF Tidal ETF Trust receives a favorable rating due to its low expense ratio, high liquidity, and proven track record of closely tracking the Tidal 500 Index. The ETF offers investors a cost-effective way to gain diversified exposure to the U.S. stock market. However, investors should be aware of the inherent risks associated with market fluctuations and volatility.

Resources and Disclaimers:

This analysis is based on publicly available information from ETF Tidal ETF Trust's website and other reputable financial sources as of November 2023. The provided information should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.