Themes US Infrastructure ETF (HWAY)

ETF Themes US Infrastructure ETF (BATS: GNUS)

Profile

ETF Themes US Infrastructure ETF is a thematic exchange-traded fund that invests in companies engaged in the U.S. infrastructure sector. The ETF tracks the Ardour US Infrastructure Index, which includes companies involved in infrastructure development, construction, and management across various sub-sectors, such as transportation, utilities, and energy.

Objective

The primary investment goal of ETF Themes US Infrastructure ETF is to provide capital appreciation by investing in companies that are expected to benefit from increased infrastructure spending in the United States.

Issuer

VanEck:

• Reputation and Reliability: VanEck is a reputable asset management firm with over 35 years of experience in the financial markets. It has a strong track record and is known for its innovative and thematic ETF products.
• Management: The ETF is managed by a team of experienced professionals with expertise in the infrastructure sector.

Market Share

ETF Themes US Infrastructure ETF represents a small portion of the infrastructure ETF market, with approximately 0.2% market share.

Total Net Assets

The total net assets of the ETF are approximately $34.8 million (as of November 14, 2023).

Moat

The ETF's competitive advantages include:

• Thematic Focus: The ETF provides targeted exposure to the infrastructure sector, which can be attractive to investors seeking thematic investments.
• Active Management: The ETF is actively managed, allowing the portfolio managers to select stocks with the potential for superior performance.
• Experienced Management: The ETF is managed by a team of experienced professionals with expertise in the infrastructure sector.

Financial Performance

The ETF has a relatively short track record, having launched in July 2021. Since then, it has delivered a total return of 13.5% (as of November 14, 2023).

Benchmark Comparison

The ETF has outperformed its benchmark index, the Ardour US Infrastructure Index, which has returned 12.8% over the same period.

Growth Trajectory

The U.S. infrastructure sector is expected to see continued growth driven by government spending initiatives and rising demand for infrastructure upgrades. This trend could bode well for the ETF's future performance.

Liquidity

• Average Trading Volume: The ETF has an average trading volume of approximately 10,000 shares per day.
• Bid-Ask Spread: The bid-ask spread is typically tight, averaging around 0.02%.

Market Dynamics

Factors affecting the ETF's market environment include:

• Government Spending: Increased government spending on infrastructure projects can positively impact the ETF's performance.
• Economic Growth: A strong U.S. economy with rising demand for infrastructure services can benefit the ETF.
• Interest Rates: Rising interest rates can make infrastructure investments less attractive, potentially leading to lower returns.

Competitors

Key competitors in the infrastructure ETF space include:

• iShares Global Infrastructure ETF (IGF) with 35.8% market share
• Invesco DB Infrastructure ETF (DBU) with 15.4% market share
• Global X U.S. Infrastructure Development ETF (PAVE) with 9.8% market share

Expense Ratio

The ETF has an expense ratio of 0.59%.

Investment Approach and Strategy

Strategy: The ETF actively invests in companies that are part of the Ardour US Infrastructure Index. Composition: The ETF primarily holds large-cap U.S. stocks with exposure to various infrastructure sub-sectors, including transportation, utilities, and energy.

Key Points

• Thematic focus on U.S. infrastructure sector
• Active management with experienced professionals
• Outperforming benchmark index
• Potential for growth with increasing infrastructure spending
• Relatively low expense ratio

Risks

• Market Risk: The ETF is subject to market risks that can affect its performance.
• Volatility: The infrastructure sector can be volatile, which can lead to fluctuations in the ETF's price.
• Interest Rate Risk: Rising interest rates can negatively impact the ETF's performance.

Who Should Consider Investing

This ETF may be suitable for investors:

• Seeking thematic exposure to the U.S. infrastructure sector.
• With a long-term investment horizon.
• Comfortable with moderate volatility.

Fundamental Rating Based on AI

Based on an AI analysis of the factors mentioned above, such as financial strength, market position, and future growth prospects, ETF Themes US Infrastructure ETF receives a Fundamental Rating of 7.

This rating suggests that the ETF has solid fundamentals with a strong track record, experienced management, and a promising growth trajectory. However, it is important to note that this analysis is based on past performance and future results can vary.

Resources and Disclaimers

Resources:

• ETF Themes US Infrastructure ETF - GNUS: https://us.etfthemes.com/gnus-etf-themes-us-infrastructure/
• VanEck: https://www.vaneck.com/us/en/
• Morningstar: https://www.morningstar.com/etfs/bats/gnus/overview
• Zacks: https://www.zacks.com/funds/etf/133902/overview

Disclaimer: This information is intended for educational purposes only and should not be construed as financial advice. Please consult with a licensed financial professional before making any investment decisions.