Columbia ETF Trust I (HYSD)

US ETF Columbia ETF Trust I Overview

Profile:

US ETF Columbia ETF Trust I, also known as COLU (US:COLU), is an actively managed ETF that invests primarily in U.S. equity and equity-related instruments, with a focus on small and mid-cap growth stocks. It follows a quantitative approach, leveraging the expertise of professional portfolio management and a proprietary quantitative investment model.

Objectives:

Its main objective is to achieve long-term capital appreciation by investing in U.S. equity securities with high potential for capital appreciation and high total returns.

Issuer: The issuer is Columbia ETF Services Company. This company was established as an entity to assist Columbia Management Investment Distributors, Inc. to develop, promote and manage unit trusts and UIT's (Unit Investment Trust) based upon a variety of investment styles and strategies.

Issuer's Reputation and Reliability:

Columbia Management Investment Distribitutors Inc., is a subsidiary of Ameriprise financial, Inc., a Fortune 250 company, with a 75-year history in the asset and wealth management industry, managing over 180 billion in assets on behalf over a million accounts.

Management:

The ETF is overseen by a team from Ameriprise Financial Management, with the portfolio management team led:

• Portfolio Managers: Michael A. Parker and Matthew T. O'Reilly

  • With over a decade of experience each in equity portfolio management.

• Head of U.S. Quantitative Equities: Dr. Scott Wolle

  • He has a Ph D in Econometrics and Mathematical Economics, and over three years of experience.

Market share:

As per ETF.com, COLU has a market share below 0.01% in its segment, indicating an early stage in its market penetration and growth potential ($11,855.6M total net asset value as per ETF.com)

Total net asset:

Based data from the COLU Fact sheet (20230931)

Moat:

COLU's competitive advantages include:

• Proprietary research: Quantitative models, drawing from a 20+ year proprietary database, analyzing over 20,000 financial and market data points.
• Differentiated Approach: Combining active portfolio and model management, aiming to identify investment

opportunities with high value potential that may be overlooked by traditional index-based approaches.

Financial Performance:

Based upon the COLU Fact Sheet (as of Q3-2023)

• *Total return on investment (since Inception 17-Jul-21): 60.61%
• 1-Year: -19.36%
• 3 Year annualized:
• Benchmark: S&P500, -169%
• (Note: Short existence of this ETF limits extended historical analysis.)

Market Dynamics:

The ETF operates within a dynamic environment, susceptible to global, regional, and sector specific economic developments, interest rates, as well as geopolitical events, and market sentiment influencing sector and individual company performance.

Liquidity

• Average Daily Volume (3 month average): 6,542
• Bid/ask Spread: $0.1056

Competition:

Within a crowded actively-managed US equity ETF market, competitors include IWM (iShares Russell Top 200 Index),

MDY (SPDR S&P MidCap 400), and IJH(iShares Core S&P Mid-Cap) managing billions in assets and having larger trading volume.

Expense Ratio: 0,80%

Investment approach and Strategy:

• The ETF invests primarily in equity, equity related securities that consist primarily of common stock, or other equity securities of U.S. Issuers, including

• Real Estate Investment Trust (REIT)

• American Deposatory Receipts (ADRs)

• Its strategy aims for long-term growth by identifying undervalued stocks with growth potential, not necessarily tracking any particular index.

Key Points

• Actively managed mid and small cap US Equity ETF.
• Proprietary research and strategy.
• Relatively lower expense ratios compared to some actively-managed mid and smaller cap US Equity ETFs.
• Early-stage growth with a market share to potentially increase.

Risks

• Market Volatility: Small and mid-cap stocks can be more volatile, resulting short term fluctuations
• Management Risk: Actively managed fund's performance dependent upon the investment team's success

Who Should Invest? This ETF might suit investors seeking:

• Exposure to small- and small cap US market equity
• Active managament and potential to capitalize on opportunities overlooked in traditional indexing
• Higher risk tolerance for the potential of higher capital appreciation