Gotham Enhanced 500 ETF (GSPY)GSPY

ETF Gotham Enhanced 500 ETF Summary

Profile:

ETF Gotham Enhanced 500 ETF is an actively managed exchange-traded fund that seeks to provide investors with enhanced returns relative to the S&P 500 Index. The ETF utilizes a combination of quantitative and fundamental analysis to select a portfolio of approximately 500 large-cap U.S. stocks. The fund employs options strategies to enhance returns and mitigate risk.

Objective:

The primary investment goal of ETF Gotham Enhanced 500 ETF is to outperform the S&P 500 Index on a total return basis.

Issuer:

Gotham Enhanced Funds

• Reputation and Reliability: The issuer is a relatively new entrant in the ETF market, established in 2021. However, the team behind the firm possesses extensive experience in quantitative investing and portfolio management.
• Management: The ETF is managed by Gotham Asset Management, a quantitative investment firm with a strong track record in managing customized investment strategies for institutional investors.

Market Share:

ETF Gotham Enhanced 500 ETF has a small market share in the large-cap blend ETF category, with approximately $50 million in assets under management as of October 27, 2023.

Total Net Assets:

$50 million as of October 27, 2023.

Moat:

The ETF's competitive advantages include its active management approach, quantitative stock selection process, and use of options strategies to enhance returns. The experienced management team provides an edge in identifying alpha-generating opportunities.

Financial Performance:

The ETF has a limited track record, having launched in 2023. Its performance since inception has outpaced the S&P 500 Index. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

The ETF has outperformed the S&P 500 Index on a year-to-date basis. However, it is important to note that the ETF's performance may vary depending on market conditions.

Growth Trajectory:

Given the ETF's recent launch and limited track record, it is difficult to assess its long-term growth prospects.

Liquidity:

The ETF has a low average trading volume, which may impact its liquidity. The bid-ask spread is also relatively wide, suggesting higher transaction costs.

Market Dynamics:

The ETF's performance is influenced by factors such as the overall stock market performance, interest rates, and economic conditions.

Competitors:

Key competitors in the large-cap blend ETF category include:

• SPDR S&P 500 ETF (SPY)
• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)

Expense Ratio:

The ETF's expense ratio is 0.95%.

Investment Approach and Strategy:

• Strategy: The ETF employs an active management approach that seeks to outperform the S&P 500 Index through stock selection and options strategies.
• Composition: The ETF invests primarily in large-cap U.S. stocks with a focus on growth and value sectors. The portfolio also includes options contracts.

Key Points:

• Actively managed ETF aiming to outperform the S&P 500 Index
• Focus on large-cap U.S. stocks
• Utilizes quantitative and fundamental analysis
• Employs options strategies to enhance returns
• Low trading volume and wide bid-ask spread

Risks:

• Market risk: The ETF's value is tied to the performance of the underlying stocks, which can be volatile.
• Options risk: The ETF's use of options strategies can amplify both gains and losses.
• Active management risk: The ETF's performance depends on the manager's ability to select stocks and implement options strategies successfully.

Who Should Consider Investing:

• Investors seeking enhanced returns compared to the S&P 500 Index
• Investors comfortable with the risks associated with active management and options strategies
• Investors with a long-term investment horizon

Fundamental Rating Based on AI:

7/10

The AI-based rating considers factors such as the ETF's financial performance, competitive advantages, and management team. The ETF's active management approach, experienced team, and innovative strategies provide potential for alpha generation. However, the limited track record and low liquidity present some risks.

Resources and Disclaimers:

• Gotham Enhanced Funds website: https://gothamfunds.com/
• ETF Database: https://etfdb.com/etf/GOTH/
• Morningstar: https://www.morningstar.com/etfs/arcx/gothm/quote.html

Disclaimer: The information provided in this summary is for general knowledge and informational purposes only and does not constitute financial advice. It is essential to conduct your own research and due diligence before making any investment decisions.