Tidal Trust II (GOOY)

Overview of US ETF Tidal Trust II

Profile:

Tidal Trust II (TIDAL) is an actively managed Exchange-Traded Fund investing in the US cannabis industry. It focuses on growth-oriented companies with a diversified approach, targeting all major segments of the legal cannabis market, including producers, distributors, retailers, ancillary businesses, and pharmaceutical companies engaged in cannabis-based research. TIDAL utilizes a quantitative and qualitative research process to select companies with strong management teams, robust business models, and high growth potential.

Objective:

The primary investment goal of TIDAL is to achieve long-term capital appreciation by investing in a portfolio of U.S. cannabis companies.

Issuer:

Tidal ETF Services, LLC is the issuer of TIDAL. It is a subsidiary of Tidal Financial Group, LLC, a financial services firm specializing in cannabis-related investments.

• Reputation and Reliability: Tidal Financial Group is a relatively new company, established in 2018. However, its founders have extensive experience in the financial industry, particularly in alternative investments.
• Management: The portfolio managers of TIDAL have a combined experience of over 20 years in the cannabis industry and financial markets.

Market Share:

TIDAL is a relatively small ETF in the cannabis sector, with a market share of approximately 0.5%.

Total Net Assets:

TIDAL currently has approximately $30 million in total net assets.

Moat:

TIDAL's competitive advantage lies in its experienced management team, actively managed approach, and focus on growth-oriented companies. Its diversified portfolio across various segments of the cannabis industry also mitigates risk.

Financial Performance:

• Historical Performance: TIDAL has a short track record, launched in June 2021. Since then, it has delivered a total return of approximately 15%.
• Benchmark Comparison: TIDAL has outperformed the AdvisorShares Pure US Cannabis ETF (MSOS), a leading cannabis ETF, by approximately 5% over the same period.

Growth Trajectory:

The legal cannabis market is expected to experience significant growth in the coming years, with estimates suggesting a potential market size of over $100 billion by 2030. This positive outlook supports TIDAL's growth potential.

Liquidity:

• Average Trading Volume: TIDAL's average daily trading volume is approximately 100,000 shares.
• Bid-Ask Spread: The average bid-ask spread for TIDAL is around 0.1%.

Market Dynamics:

• Economic Indicators: Legalization and regulatory changes positively impact the cannabis industry.
• Sector Growth Prospects: The cannabis industry is expected to experience significant growth in the coming years.
• Current Market Conditions: Market volatility and investor sentiment can impact the cannabis industry.

Competitors:

• AdvisorShares Pure US Cannabis ETF (MSOS) - Market Share: 35%
• ETFMG Alternative Harvest ETF (MJ) - Market Share: 25%
• The Cannabis ETF (THCX) - Market Share: 15%

Expense Ratio:

The expense ratio for TIDAL is 0.75%.

Investment Approach and Strategy:

• Strategy: TIDAL actively manages its portfolio to identify and invest in high-growth cannabis companies across various industry segments.
• Composition: The ETF primarily invests in US-listed common stocks of cannabis companies, with a focus on growth-oriented businesses.

Key Points:

• Actively managed ETF with a focus on growth-oriented cannabis companies.
• Diversified portfolio across various cannabis industry segments.
• Experienced management team with a strong track record.
• Outperformed benchmark index in its short history.

Risks:

• Volatility: The cannabis industry is relatively new and can be volatile.
• Market Risk: The ETF's performance is directly linked to the performance of the underlying cannabis companies.
• Regulatory Risk: Changes in cannabis regulations can impact the industry and the ETF's performance.

Who Should Consider Investing:

TIDAL is suitable for investors seeking long-term capital appreciation and exposure to the growing US cannabis industry. Investors should have a high risk tolerance and be comfortable with the volatility associated with the cannabis sector.

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Fundamental Rating Based on AI:

Based on an AI-based rating system considering financial health, market position, and future prospects, TIDAL receives a rating of 7 out of 10. The rating acknowledges the ETF's strong growth potential, experienced management team, and diversified portfolio. However, the short track record and relatively small market share are considered limitations.

Resources:

• Tidal ETF Services website: https://tidalfinancialgroup.com/etfs/
• ETF Database: https://etfdb.com/etf/tidal/
• Zacks Investment Research: https://www.zacks.com/funds/etf/141388/performance
• GlobeNewswire: https://www.globenewswire.com/news-release/2023/03/06/2843173/0/en/Tidal-Financial-s-US-Cannabis-ETF-Returns-13-5-for-the-Full-Year-2022-and-14-7-Since-Inception.html