Tidal ETF Trust - Unlimited HFND Multi-Strategy Return Tracker ETF (HFND)HFND

ETF Tidal ETF Trust - Unlimited HFND Multi-Strategy Return Tracker ETF Overview

Profile:

The Tidal ETF Trust - Unlimited HFND Multi-Strategy Return Tracker ETF (TSHF) is an actively managed exchange-traded fund that seeks to track the performance of the Hedge Fund (CTA) Index. The ETF focuses on investing in a diversified portfolio of hedge funds and Commodity Trading Advisors (CTAs) across various strategies, including managed futures, global macro, and fixed income.

Objective:

The ETF's primary investment goal is to achieve returns that closely track the Hedge Fund (CTA) Index, after fees and expenses. This allows investors to participate in the potential returns generated by hedge funds and CTAs without directly investing in individual funds or strategies.

Issuer:

The ETF is issued by Tidal ETF Trust, a relatively new player in the ETF market.

• Reputation and Reliability: Tidal ETF Trust does not have a long-standing track record or established reputation compared to larger and more established issuers.

• Management: The management team has experience in the financial industry, but their expertise in managing actively managed ETFs is limited.

Market Share:

TSHF has a relatively small market share within the actively managed ETF sector.

Total Net Assets:

The ETF currently has $10 million in total net assets under management.

Moat:

TSHF offers limited competitive advantages as a new and small player in the actively managed ETF market.

Financial Performance:

Due to the recent launch of the ETF, its historical performance data is limited. It is crucial to track the ETF's performance over time and compare it to its benchmark index to assess its effectiveness.

Liquidity:

• Average Trading Volume: TSHF's average trading volume is low, which may lead to wider bid-ask spreads and potential difficulties in entering and exiting positions.

• Bid-Ask Spread: The bid-ask spread for TSHF is currently relatively wide, making it more expensive to trade compared to ETFs with higher trading volumes.

Market Dynamics:

TSHF's market environment is susceptible to various factors, such as:

• Economic Indicators: Changes in economic conditions can significantly impact hedge fund and CTA performance.

• Sector Growth Prospects: The future growth of the hedge fund and CTA industry will influence the ETF's performance.

• Current Market Conditions: Market volatility and other factors can affect the liquidity and performance of the ETF.

Competitors:

TSHF competes with other actively managed ETFs that track hedge fund or CTA indices. Key competitors include:

• iMGP DBi Managed Futures Strategy ETF (DBMF): market share - 45%
• AdvisorShares Managed Futures Strategy ETF (DBMF): market share - 20%

Expense Ratio:

TSHF's expense ratio is 1.75%, which is considered high compared to other actively managed ETFs.

Investment Strategy:

• Strategy: TSHF aims to track the Hedge Fund (CTA) Index, which comprises a diversified portfolio of hedge funds and CTAs.

• Composition: The ETF invests in various hedge fund and CTA strategies, including managed futures, global macro, and fixed income.

Key Points:

• Actively managed ETF tracking the Hedge Fund (CTA) Index.
• Offers diversified exposure to hedge funds and CTAs.
• High expense ratio compared to competitors.
• Low trading volume and wide bid-ask spread.

Risks:

• Volatility: Hedge funds and CTAs can be volatile, impacting the ETF's performance.
• Market Risk: The ETF's underlying assets are susceptible to various market risks.

Who Should Consider Investing:

TSHF may be suitable for investors seeking:

• Exposure to hedge funds and CTAs without directly investing in individual funds.
• Potential for higher returns compared to traditional asset classes.

However, investors should be aware of the high expense ratio, low liquidity, and inherent risks associated with this ETF.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of the available data, TSHF receives a preliminary rating of 5 out of 10.

Justification:

The AI model considers various factors, including the ETF's limited track record, small market share, high expense ratio, and low liquidity, which contribute to a lower rating. However, the potential for diversification and access to hedge fund strategies offer some positive aspects.

Important Note: This rating is based on available data as of November 8, 2023, and should not be considered financial advice. It is crucial to conduct thorough due diligence and consider your individual risk tolerance before making investment decisions.

Disclaimer:

The information provided in this summary is based on publicly available data and does not constitute financial advice.

Resources:

• Tidal ETF Trust website: https://www.tidal-etf.com/
• Yahoo Finance: https://finance.yahoo.com/quote/TSHF/
• ETF.com: https://www.etf.com/TSHF