Amplify ETF Trust (IVES)IVES

ETF Wedbush ETFMG Global Cloud Technology ETF (NASDAQ: YCLD)

Profile

Primary Focus: The ETF invests in companies engaged in the global cloud technology sector, including software, hardware, and services providers.

Asset Allocation: Primarily invests in US-listed companies, with some exposure to international markets.

Investment Strategy: Actively managed, seeking to identify and invest in high-growth cloud technology companies with the potential for disruptive innovation and market leadership.

Objective

The primary investment goal is to achieve long-term capital appreciation by investing in a diversified portfolio of cloud technology companies.

Issuer

Wedbush ETFMG: A subsidiary of Wedbush Securities, a leading financial services firm with a long history and strong reputation in the financial industry.

Management: Experienced team with expertise in managing actively managed thematic ETFs.

Market Share

YCLD is a relatively new ETF, launched in 2021. It has a small but growing market share in the cloud technology ETF space.

Total Net Assets

As of October 26, 2023, the ETF has approximately $400 million in total net assets.

Moat

• Active Management: The ETF's active management strategy allows it to select and invest in high-growth companies that may not be included in traditional cloud technology indices.
• Thematic Focus: The ETF's focus on the rapidly growing cloud technology sector provides exposure to a high-potential investment theme.
• Experienced Management: The ETF's management team has a strong track record of identifying and investing in successful growth companies.

Financial Performance

Historical Performance: Since its inception in April 2021, YCLD has generated a cumulative return of approximately 40%. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison: YCLD has outperformed the S&P 500 index over the same period.

Growth Trajectory

The cloud technology sector is expected to continue experiencing strong growth in the coming years, driven by increasing demand for cloud-based services and solutions.

Liquidity

Average Trading Volume: YCLD has an average daily trading volume of approximately 100,000 shares.

Bid-Ask Spread: The bid-ask spread for YCLD is typically around 0.10%.

Market Dynamics

Factors affecting the market environment for YCLD include:

• Growth of the cloud technology sector
• Competition from other cloud technology ETFs
• Economic conditions
• Interest rate policies

Competitors

• Invesco NASDAQ Cloud Computing ETF (NASDAQ: CLDE)
• Global X Cloud Computing ETF (NASDAQ: CLOU)
• First Trust Cloud Computing ETF (NASDAQ: SKYY)

Expense Ratio

The expense ratio for YCLD is 0.60%.

Investment Approach and Strategy

• Strategy: Actively managed, seeking to identify and invest in high-growth cloud technology companies.
• Composition: Primarily invests in stocks of companies engaged in the cloud technology sector.

Key Points

• High-growth potential: Invests in a rapidly growing sector with significant potential for future expansion.
• Active management: Experienced management team actively selects and invests in promising companies.
• Thematic focus: Provides exposure to a specific high-potential investment theme.

Risks

• Volatility: The ETF is actively managed and invests in high-growth companies, which can lead to higher volatility than traditional ETFs.
• Market risk: The ETF is exposed to the risks associated with the cloud technology sector, including competition and technological advancements.

Who Should Consider Investing

• Investors seeking long-term capital appreciation through exposure to the high-growth cloud technology sector.
• Investors comfortable with higher volatility and risk associated with actively managed thematic ETFs.

Fundamental Rating Based on AI

8/10

YCLD receives a strong rating based on its active management strategy, thematic focus, and experienced management team. However, investors should be aware of the risks associated with actively managed thematic ETFs.

Resources and Disclaimers

• Website Sources:
  • https://etfmg.com/funds/yqld/
  • https://www.morningstar.com/etfs/arcx/yqld/quote
• 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.