Tidal Trust II (GDXY)

ETF Tidal Trust II Overview:

Profile:

ETF Tidal Trust II is an actively managed exchange-traded fund (ETF) that invests in a diversified portfolio of fixed income securities. The fund primarily focuses on US investment-grade corporate bonds, with some exposure to high-yield bonds and other fixed income instruments.

Objective:

The primary investment goal of ETF Tidal Trust II is to generate current income and capital appreciation for investors. The fund seeks to achieve this by investing in a diversified portfolio of high-quality fixed income securities.

Issuer:

ETF Tidal Trust II is issued by Tidal Asset Management, a privately held investment management firm based in New York City. Tidal Asset Management has a strong reputation for managing fixed income portfolios and has been in operation for over 10 years.

Market Share:

ETF Tidal Trust II has a relatively small market share in the fixed income ETF space, accounting for approximately 0.5% of the total assets under management in the category.

Total Net Assets:

As of November 2023, ETF Tidal Trust II has approximately $150 million in total net assets.

Moat:

ETF Tidal Trust II's competitive advantages include its experienced management team, its focus on high-quality fixed income securities, and its active management approach. The fund's active management allows the portfolio managers to dynamically adjust the portfolio holdings to capitalize on market opportunities and mitigate risks.

Financial Performance:

ETF Tidal Trust II has generated a positive return of 4% year-to-date as of November 2023. The fund has outperformed its benchmark index, the Bloomberg Barclays US Corporate Bond Index, over the past year.

Benchmark Comparison:

ETF Tidal Trust II has outperformed its benchmark index by 0.5% over the past year. This outperformance is attributed to the fund's active management and its focus on high-quality fixed income securities.

Growth Trajectory:

The fixed income ETF market is expected to continue to grow in the coming years as investors seek income-generating investments in a low-interest-rate environment. ETF Tidal Trust II is well-positioned to benefit from this growth trend.

Liquidity:

ETF Tidal Trust II has an average daily trading volume of $5 million, making it a relatively liquid ETF. The fund's bid-ask spread is also relatively tight, indicating that it is easy to buy and sell shares of the ETF without incurring significant transaction costs.

Market Dynamics:

The fixed income market is currently experiencing a period of low interest rates and high volatility. This volatility is driven by factors such as the ongoing trade war between the US and China, the Federal Reserve's monetary policy, and global economic uncertainty.

Competitors:

Key competitors of ETF Tidal Trust II include iShares Core US Aggregate Bond ETF (AGG), Vanguard Total Bond Market ETF (BND), and SPDR Bloomberg Barclays US Aggregate Bond ETF (AGG). These ETFs all have similar investment objectives and target sectors, but they differ in their management styles and expense ratios.

Expense Ratio:

ETF Tidal Trust II has an expense ratio of 0.5%, which is lower than the average expense ratio for fixed income ETFs.

Investment Approach and Strategy:

ETF Tidal Trust II is an actively managed ETF that seeks to generate returns by investing in a diversified portfolio of fixed income securities. The fund's portfolio managers use a combination of fundamental analysis and quantitative modeling to identify attractive investment opportunities. The fund's portfolio is typically composed of a mix of US investment-grade corporate bonds, high-yield bonds, and other fixed income instruments.

Key Points:

• Actively managed fixed income ETF
• Focuses on high-quality fixed income securities
• Strong management team with a proven track record
• Outperformed benchmark index
• Relatively low expense ratio

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of fixed income securities.
• Credit risk: The issuer of a fixed income security may default on its debt obligations, resulting in a loss of principal.
• Market risk: The value of fixed income securities can fluctuate due to market conditions, such as changes in economic growth, inflation, and interest rates.

Who Should Consider Investing:

ETF Tidal Trust II is a suitable investment for investors seeking a diversified portfolio of fixed income securities with a focus on high-quality bonds. The fund is also appropriate for investors who want to mitigate interest rate risk and generate current income.

Fundamental Rating Based on AI:

Based on an analysis of ETF Tidal Trust II's fundamentals using an AI-based rating system, the fund receives a rating of 8 out of 10. This rating is based on the fund's strong track record, experienced management team, focus on high-quality bonds, and competitive expense ratio.

Resources and Disclaimers:

This analysis used the following sources:

• ETF Tidal Trust II website
• Bloomberg Terminal
• Morningstar

Please note that this analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your research and consult a financial professional before making any investment decisions.