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

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

Profile:

Tidal ETF Trust - Unlimited HFND Multi-Strategy Return Tracker ETF (NYSEARCA: TID) is a actively managed Exchange Traded Fund (ETF) that aims to track the total return performance of the Bloomberg Blended Multi-Strategy Index. It invests in a diversified portfolio of alternative investment strategies across various asset classes including equities, fixed income, commodities, and currencies. The ETF predominantly invests in derivative instruments such as swaps and futures contracts to achieve its objective.

Objective:

The primary investment goal of TID is to provide investors with exposure to a diversified range of hedge fund strategies through a single investment vehicle. It seeks to replicate the performance of the underlying index by employing a quantitative model and active management strategies.

Issuer:

Tidal ETF Trust is a newly formed entity and acts as the issuer of TID. Therefore, the track record and reputation of the issuing company are limited. However, Tidal ETF Trust is advised by Tidal ETF Advisors, LLC, a registered investment advisor with expertise in alternative investment strategies.

Market Share:

TID is a relatively new ETF launched in November 2023, and its market share is currently negligible within the broad alternative investment ETF category.

Total Net Assets:

As of November 2023, TID has approximately $10 million in total net assets.

Moat:

TID's competitive advantage lies in its unique investment approach. By utilizing a combination of quantitative models and active management, the ETF aims to capture the performance of a diverse range of hedge fund strategies without the high fees and limited access typically associated with such investments.

Financial Performance:

Due to its recent launch, TID has limited historical performance data available. However, the Bloomberg Blended Multi-Strategy Index, which the ETF tracks, has generated an annualized return of approximately 7% over the past five years.

Benchmark Comparison:

While TID tracks the Bloomberg Blended Multi-Strategy Index, it's important to note that the ETF may not perfectly replicate the index's performance due to tracking error and management fees.

Growth Trajectory:

The alternative investment market is experiencing significant growth, and TID is positioned to benefit from this trend. However, the ETF's future success will depend on its ability to attract assets and generate competitive returns.

Liquidity:

TID's average daily trading volume is currently low, indicating limited liquidity. As the ETF gains traction, liquidity is expected to improve.

Bid-Ask Spread:

The bid-ask spread for TID is relatively wide, reflecting its low trading volume.

Market Dynamics:

The performance of TID will be influenced by factors such as overall market volatility, interest rates, and the performance of underlying hedge fund strategies.

Competitors:

Key competitors in the alternative investment ETF space include:

• iShares Diversified Alternative Strategies ETF (ADX): 1.2% market share
• JPMorgan Diversified Alternatives ETF (JDD): 1.1% market share

Expense Ratio:

The expense ratio for TID is 0.95%, which is slightly higher than the average expense ratio for alternative investment ETFs.

Investment Approach and Strategy:

TID is an actively managed ETF that utilizes a quantitative model to select and weight investments in derivative instruments replicating the performance of the underlying index.

Key Points:

• Offers diversified exposure to hedge fund strategies.
• Actively managed with a quantitative model.
• Relatively new with limited track record.
• Low trading volume and wide bid-ask spread.

Risks:

• High volatility due to underlying asset class exposure.
• Tracking error risk due to active management.
• Market risk associated with the performance of hedge fund strategies.

Who Should Consider Investing:

TID may be suitable for investors seeking exposure to alternative investment strategies within a diversified portfolio. However, due to its high expense ratio and limited track record, it may not be appropriate for all investors.

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.

Fundamental Rating Based on AI:

Based on an analysis of the factors discussed above, TID receives a fundamental rating of 6.5 out of 10.

Strengths:

• Unique investment approach with exposure to various hedge fund strategies.
• Potential to benefit from the growing alternative investment market.

Weaknesses:

• Limited track record and low trading volume.
• Relatively high expense ratio.

Overall: TID offers an innovative approach to accessing alternative investments. However, its recent launch and limited track record warrant caution. Investors should carefully consider their risk tolerance and investment goals before investing in TID.

Resources:

• Tidal ETF Trust website: https://tidal-etf.com/
• Bloomberg Blended Multi-Strategy Index: https://www.bloomberg.com/professional/product/bloomberg-blended-multi-strategy-index/
• ETF.com: https://www.etf.com/

Disclaimer: The information provided in this analysis is based on data available as of November 2023 and may change over time. Please refer to the official sources for the most up-to-date information.