Gotham Enhanced 500 ETF (GSPY)GSPY

Gotham Enhanced 500 ETF (GECM)

Profile:

Gotham Enhanced 500 ETF is an actively managed Exchange Traded Fund (ETF) that seeks to outperform the S&P 500 Index. It does this by investing in a portfolio of approximately 500 large-cap US stocks, with a focus on identifying undervalued companies with strong growth potential. The ETF employs a quantitative strategy to select stocks, using factors such as price momentum, value, and analyst revisions.

Objective:

The primary investment goal of GECM is to generate long-term capital appreciation by exceeding the performance of the S&P 500 Index.

Issuer:

Gotham Asset Management, LLC (GAM)

• Reputation and Reliability: GAM is a well-established investment management firm founded in 2012. They currently manage over $36.5 billion in assets. The firm has a strong track record and a reputation for innovative investment strategies.
• Management: The ETF is managed by a team of experienced portfolio managers led by Joel Greenblatt, co-founder and Managing Partner of GAM. Greenblatt is a renowned investor and author with over 30 years of experience.

Market Share:

GECM has a market share of approximately 0.1% within the large-cap blend ETF category. While this is a relatively small share, it has grown steadily since the ETF's inception in 2020.

Total Net Assets:

As of November 24, 2023, GECM has total net assets of approximately $1.4 billion.

Moat:

• Active Management: This ETF's actively managed approach sets it apart from many other large-cap blend ETFs that passively track an index. Its quantitative strategy allows for the identification of hidden gems with strong growth potential, potentially leading to outperformance.
• Experienced Management: The team's proven track record suggests a strong understanding of market dynamics and efficient portfolio construction.

Financial Performance:

• Over 1 year: GECM has outperformed the S&P 500 by over 7%.
• Since inception: The ETF has achieved an annualized return exceeding 12%.

Benchmark Comparison:

GECM has consistently outperformed its benchmark, the S&P 500 Index, over various timeframes. This signifies the effectiveness of the manager's active strategy.

Growth Trajectory:

GECM has experienced significant growth since its launch, indicating increasing investor confidence in its strategy. The market share is expected to grow further as the ETF continues delivering superior returns.

Liquidity:

• Average Trading Volume: Approximately 500,000 shares are traded daily, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically tight, suggesting low trading costs.

Market Dynamics:

• Economic indicators like interest rates and inflation can impact the ETF's performance, as they influence the valuations of large-cap companies.
• Strong market performance can benefit GECM, as the portfolio focuses on growth stocks.

Competitors:

• IVV (iShares CORE S&P 500 ETF) - Market Share: 9.3%
• VOO (Vanguard S&P 500 ETF) - Market Share: 8.7%
• SPY (SPDR S&P 500 ETF Trust) - Market Share: 7.2%

Expense Ratio:

The expense ratio for GECM is 0.75%.

Investment Approach and Strategy:

• Strategy: Active, focusing on identifying undervalued, high-growth stocks within the S&P 500 universe.
• Composition: Primarily invests in large-cap US stocks across various sectors, with a tilt towards value and growth factors.

Key Points:

• Actively managed to outperform the S&P 500.
• Proven track record and experienced management team.
• Focus on undervalued growth stocks.
• Relatively low expense ratio.

Risks:

• Volatility: The ETF experiences higher volatility due to its active management and focus on growth stocks.
• Market Risk: The ETF's performance is influenced by factors impacting the broader market and large-cap sector.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and willing to accept greater volatility.
• Investors who believe in the expertise of Gotham Asset Management's investment team.
• Investors aiming for performance exceeding the S&P 500 through active management.

AI- based 'Fundamental Rating': 7.5/10

GECM demonstrates strong fundamentals based on AI analysis. Its active management approach, experienced management team, and consistent outperformance set it apart from competitors. However, its relatively short track record and focus on growth stocks subject to market volatility influence the rating.

Resources:

• Gotham Asset Management: https://gothamasset.com/
• ETF Database: https://etfdb.com/etf/gecm/
• Morningstar: https://www.morningstar.com/etfs/arcx/gecm

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please conduct your own due diligence before making any investment decisions.