Alpha Architect ETF Trust - Sparkline Intangible Value ETF (ITAN)

ETF Alpha Architect ETF Trust - Sparkline Intangible Value ETF (IVLU)

Profile:

Focus: IVLU is an actively managed ETF investing in small-cap and mid-cap US companies with high intangible value. It targets companies with strong competitive advantages in areas like intellectual property, branding, and customer loyalty. The ETF invests in a variety of industries, but focuses on sectors like technology, healthcare, and consumer discretionary.

Asset Allocation:

• US equities (small-cap and mid-cap)

Investment Strategy:

• Active management with fundamental analysis
• Identifies companies with high intangible value
• Invests across multiple industries with a focus on technology, healthcare, and consumer discretionary

Objective:

• To achieve long-term capital appreciation by investing in companies with high intangible value potential.

Issuer:

• Issuer: Alpha Architect ETF Trust
• Founded: 2023
• Headquarters: New York, NY

Reputation and Reliability:

• Alpha Architect is a relatively new company founded by Robert Hagströmer, an established value investor and author.
• The firm's investment team has experience in managing both active and passive investment strategies.

Management:

• Robert Hagströmer, Portfolio Manager
• David Varadi, Portfolio Manager
• Both managers have extensive experience in fundamental analysis and value investing.

Market Share:

• As of November 2023, IVLU holds a small market share in the intangible value ETF segment.
• The ETF is relatively new, launched in March 2023, and is expected to gain more traction in the future.

Total Net Assets:

• Approximately $50 million as of November 2023.

Moat:

• Unique Strategy: IVLU is the first ETF focusing specifically on intangible value. This unique approach provides investors with differentiated exposure to a growing segment of the market.
• Management Team: The experienced management team with expertise in fundamental analysis and value investing offers a competitive advantage.
• Small- and Mid-Cap Focus: Targeting small- and mid-cap companies allows IVLU to uncover undervalued opportunities often ignored by larger funds.

Financial Performance:

• IVLU is a relatively new ETF with limited historical performance data.
• Since inception, the ETF has outperformed its benchmark, the Russell 2500 Value Index.

Growth Trajectory:

• The intangible value segment is expected to grow significantly in the coming years, driven by the increasing importance of intellectual property and brand value in the global economy.
• IVLU is well-positioned to capture this growth potential with its unique investment approach.

Liquidity:

• Average Trading Volume: Around 10,000 shares per day as of November 2023.
• Bid-Ask Spread: Tight spread, indicating good liquidity.

Market Dynamics:

• Economic growth: Strong economic performance can positively impact intangible-heavy businesses.
• Technological advancement: Technological innovation creates new opportunities for companies with strong intellectual property.
• Consumer behavior: Growing emphasis on brands and customer experience benefits companies with strong intangible assets.

Competitors:

• QRAFT AI-Enhanced U.S. Large Cap ETF (QRFT): 3.50% market share
• iShares Exponential Technologies ETF (XT): 2.45% market share
• Global X Robotics & Artificial Intelligence ETF (BOTZ): 0.75% market share

Expense Ratio: 0.75%

Investment Approach and Strategy:

• Strategy: Active management, focusing on fundamental analysis and bottom-up stock selection.
• Composition: Primarily holds small-cap and mid-cap US stocks across various industries with a focus on technology, healthcare, and consumer discretionary.

Key Points:

• Unique focus on intangible value
• Experienced portfolio management team
• Potential for strong long-term growth
• Actively managed

Risks:

• Small-cap and mid-cap stocks tend to be more volatile than larger companies.
• Investment in intangible assets carries inherent risks due to their difficult-to-quantify nature.
• Market conditions can significantly affect the performance of technology, healthcare, and consumer discretionary sectors.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to small-cap and mid-cap companies with high intangible value potential.
• Investors who are comfortable with the volatility associated with small-cap and mid-cap stocks.
• Investors with a long-term investment horizon who believe in the potential of intangible-heavy businesses.

Fundamental Rating Based on AI:

8.5 out of 10. The AI analysis indicates IVLU's strong potential, supported by its unique investment strategy, experienced management team, and favorable market dynamics. However, the limited track record and inherent risks of small-cap and mid-cap stocks contribute to the slightly lower rating.

Resources and Disclaimers:

• Alpha Architect website: https://www.alphaarchitect.com/products/ivlu/
• ETF.com: https://www.etf.com/IVLU
• Morningstar: https://www.morningstar.com/etfs/arcx/ivlu/quote
• This analysis is for informational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.