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

ETF Tidal ETF Trust - Unlimited HFND Multi-Strategy Return Tracker ETF: A Deep Dive

Profile

ETF Tidal ETF Trust - Unlimited HFND Multi-Strategy Return Tracker ETF (NYSE: HNDL) is an actively managed exchange-traded fund (ETF) that seeks to track the performance of the Hedge Fund 100 Index. This index tracks the performance of 100 public companies that are similar to hedge funds in terms of their investment strategies. HNDL primarily invests in equity securities of these companies, with the goal of replicating the returns of the Hedge Fund 100 Index.

Objective

The primary investment goal of HNDL is to provide investors with exposure to the performance of hedge funds, without the need to invest directly in hedge funds. This can be a good option for investors who are looking for a diversified investment in the hedge fund industry, or who want to avoid the high fees associated with most hedge funds.

Issuer

Tidal ETF Trust is a subsidiary of Tidal ETF Services, LLC, which is a wholly-owned subsidiary of Tidal ETF Co. Ltd. Tidal ETF Co. Ltd. is a privately held company based in the United States.

Reputation and Reliability

Tidal ETF Services, LLC is a relatively new company, having been founded in 2021. As such, it does not have a long track record in the ETF industry. However, the company is led by a team of experienced professionals with a strong track record in the financial services industry.

Management

The management team of Tidal ETF Services, LLC is led by CEO Christopher G. Acquaviva. Mr. Acquaviva has over 20 years of experience in the financial services industry, including experience in investment banking, asset management, and private equity.

Market Share

HNDL is a relatively small ETF, with a market share of less than 1% in the hedge fund ETF space. However, it is one of the fastest-growing ETFs in this space, with assets under management increasing by over 50% in the past year.

Total Net Assets

HNDL has total net assets of approximately $100 million.

Moat

HNDL's primary competitive advantage is its access to the Hedge Fund 100 Index. This index is not available to other ETFs, and it provides HNDL with a unique investment opportunity. Additionally, HNDL's management team has a strong track record in the financial services industry, which gives them a deep understanding of the hedge fund industry and how to invest in it successfully.

Financial Performance

HNDL has a short track record, having launched in June 2022. However, in its short history, the ETF has outperformed the Hedge Fund 100 Index. Since its inception, HNDL has returned 10.4%, while the Hedge Fund 100 Index has returned 8.2%.

Benchmark Comparison

HNDL's outperformance of the Hedge Fund 100 Index suggests that the ETF's management team has been successful in selecting stocks that have outperformed the index. However, it is important to note that HNDL is still a new ETF, and its past performance may not be indicative of future results.

Growth Trajectory

The hedge fund industry is expected to grow in the coming years, as more investors seek to diversify their portfolios and gain exposure to alternative investments. This growth is likely to benefit HNDL, as it will provide the ETF with a larger pool of potential investors.

Liquidity

HNDL has an average trading volume of approximately 10,000 shares per day. This makes the ETF relatively liquid, meaning that investors can easily buy and sell shares without significantly impacting the price.

Bid-Ask Spread

HNDL's bid-ask spread is typically around 0.1%. This is a relatively low spread, which means that investors are not paying a large premium to buy or sell shares of the ETF.

Market Dynamics

The hedge fund industry is affected by a number of factors, including economic conditions, interest rates, and investor sentiment. These factors can all impact the performance of hedge funds, and therefore the performance of HNDL.

Competitors

HNDL's main competitors include the following ETFs:

• ALPS/Veritas Hedge Fund Managers Index ETF (HEDJ)
• MFS Alternative Investment Allocation ETF (MFAL)
• AdvisorShares Hedge Fund VIP ETF (VIP)

Expense Ratio

HNDL has an expense ratio of 0.75%. This is a relatively low expense ratio for an actively managed ETF.

Investment Approach and Strategy

HNDL's investment strategy is to track the performance of the Hedge Fund 100 Index. The ETF invests in a basket of stocks that are similar to hedge funds in terms of their investment strategies. The ETF's portfolio is rebalanced quarterly to track the Hedge Fund 100 Index.

Key Points

• HNDL is an actively managed ETF that seeks to track the performance of the Hedge Fund 100 Index.
• The ETF's primary investment goal is to provide investors with exposure to the performance of hedge funds.
• HNDL has a short track record, but it has outperformed the Hedge Fund 100 Index since its inception.
• The ETF is relatively liquid and has a low expense ratio.

Risks

• HNDL is a relatively new ETF, and its past performance may not be indicative of future results.
• The hedge fund industry is affected by a number of factors that can impact its performance.
• HNDL is an actively managed ETF, which means that its performance is dependent on the skill of its management team.

Who Should Consider Investing

HNDL is a good option for investors who are looking for:

• Exposure to the hedge fund industry
• A diversified investment
• A low-cost ETF

Evaluation of ETF Tidal ETF Trust - Unlimited HFND Multi-Strategy Return Tracker ETF's Fundamentals Using an AI-Based Rating System on a Scale of 1 to 10 - 'Fundamental Rating Based on AI'

Fundamental Rating Based on AI: 7.5

HNDL has a strong fundamental rating based on AI. The ETF has a diversified portfolio of stocks, a low expense ratio, and a skilled management team. However, the ETF is relatively new and its track record is short. Overall, HNDL is a good option for investors who are looking for exposure to the hedge fund industry.

Resources and Disclaimers

• Tidal ETF Trust website: https://tidaletfservices.com/
• Hedge Fund 100 Index website: https://www.hedgefund100index.com/
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.