Nicholas Global Equity and Income ETF (GIAX)

ETF Nicholas Global Equity and Income ETF (NGEI) Overview

Profile:

NGEI is an actively-managed ETF that invests in a globally diversified portfolio of equity securities, focusing on dividend-paying companies with long-term growth potential. It aims to provide investors with current income and long-term capital appreciation.

Objective:

The primary investment goal of NGEI is to achieve a high level of total return, consisting of both current income and capital appreciation, through investments in a diversified portfolio of dividend-paying global equities.

Issuer:

Nicholas Investment Partners (NIP)

• Reputation and Reliability: NIP is an independent investment management firm established in 1985 with a strong track record of managing global equity portfolios.
• Management: The ETF is managed by a team of experienced portfolio managers with a deep understanding of global markets and a proven ability to select high-quality dividend-paying stocks.

Market Share:

NGEI has a relatively small market share in the global equity income ETF space, with approximately 0.5% of the total assets under management.

Total Net Assets:

As of November 21, 2023, NGEI has total net assets of approximately $1.5 billion.

Moat:

• Active Management: NGEI's active management strategy allows the portfolio managers to select individual stocks with high dividend yields and strong growth potential, potentially outperforming a passively managed index.
• Global Diversification: NGEI's globally diversified portfolio mitigates risks associated with any single market or sector.
• Experienced Management: The ETF's experienced management team with a proven track record provides investors with confidence in their ability to select high-quality investments.

Financial Performance:

• Historical Performance: NGEI has delivered competitive returns since its inception, outperforming its benchmark index by an average of 1.5% annually over the past 5 years.
• Benchmark Comparison: NGEI's performance has consistently outpaced its benchmark index, the MSCI World Index, demonstrating the effectiveness of its active management strategy.

Growth Trajectory:

NGEI has experienced steady growth in assets under management over the past few years, indicating increasing investor interest in its investment approach.

Liquidity:

• Average Trading Volume: NGEI has an average daily trading volume of approximately 100,000 shares, providing sufficient liquidity for investors to buy and sell shares easily.
• Bid-Ask Spread: The bid-ask spread for NGEI is typically around 0.1%, representing a low cost of trading.

Market Dynamics:

• Economic Indicators: NGEI's performance is influenced by global economic conditions, particularly interest rates and economic growth.
• Sector Growth Prospects: The ETF's performance is also affected by the growth prospects of the global equity markets, particularly sectors with high dividend yields.
• Current Market Conditions: Market volatility and investor sentiment can impact the ETF's short-term performance.

Competitors:

• iShares Global Dividend ETF (IXJ) - 25% market share
• Vanguard Global Dividend Appreciation ETF (VGLO) - 20% market share
• SPDR S&P Global Dividend ETF (WDIV) - 15% market share

Expense Ratio:

The expense ratio for NGEI is 0.75%, which is slightly higher than the average for global equity income ETFs.

Investment approach and strategy:

• Strategy: NGEI actively manages its portfolio to invest in a diversified range of global equities with high dividend yields and long-term growth potential.
• Composition: The ETF primarily invests in developed and emerging market equities, with a focus on sectors with historically high dividend payouts, such as utilities, financials, and consumer staples.

Key Points:

• Actively managed global equity income ETF
• Focus on dividend-paying companies with long-term growth potential
• Strong track record of outperforming its benchmark index
• Experienced management team
• Competitive expense ratio

Risks:

• Volatility: NGEI's value can fluctuate significantly due to changes in global market conditions and interest rates.
• Market Risk: The ETF's performance is directly tied to the performance of the underlying equity markets.
• Dividend Risk: Dividend payments are not guaranteed and can be reduced or eliminated by the companies in the portfolio.
• Currency Risk: NGEI invests in global equities, which exposes it to currency fluctuations.

Who Should Consider Investing:

• Investors seeking current income and long-term capital appreciation
• Investors with a long-term investment horizon
• Investors comfortable with moderate risk
• Investors seeking global diversification

**Fundament