Trust For Professional Managers (JGRW)

ETF Trust For Professional Managers Summary

Profile

The ETF Trust For Professional Managers is a passively managed exchange-traded fund (ETF) that tracks the Solactive Market Proximity Index (Solactive MLP). This index tracks the performance of a broad basket of securities in the midstream energy sector, including master limited partnerships (MLPs) and other energy infrastructure companies. The ETF aims to provide investors with exposure to the midstream energy sector through a diversified portfolio of holdings.

Objective

The primary investment goal of ETF Trust For Professional Managers is to track the Solactive MLP Index as closely as possible, before fees and expenses. The ETF seeks to achieve this objective by investing in a portfolio of securities that closely mirrors the composition of the index.

Issuer

The ETF is issued and managed by US ETF Trust, a company specializing in offering a variety of thematic and sector-specific ETFs. US ETF Trust is a subsidiary of ETF Managers Group, an independent ETF sponsor and manager.

Issuer Reputation and Reliability:

• US ETF Trust is a relatively new entrant in the ETF market, having been established in 2022. However, its parent company, ETF Managers Group, has a longer history and a solid reputation in the industry.
• ETF Managers Group is known for its innovative and thematic ETF offerings, and its commitment to providing investors with access to niche market segments.

Management:

• The ETF is managed by a team of experienced portfolio managers and analysts with expertise in the energy sector. The team has a proven track record of successfully managing other energy-focused ETFs.

Market Share

The ETF Trust For Professional Managers is a relatively small player in the midstream energy ETF space, with a market share of approximately 0.5%. However, the midstream energy sector itself is a significant and growing segment of the energy market.

Total Net Assets

As of November 7, 2023, the ETF has total net assets of approximately $50 million.

Moat

The ETF's competitive advantages include:

• Unique Strategy: The ETF offers investors a concentrated exposure to the midstream energy sector, which is often overlooked by traditional broad market index funds.
• Experienced Management: The ETF is managed by a team with a proven track record in the energy sector.
• Low Fees: The ETF has a relatively low expense ratio compared to other midstream energy ETFs.

Financial Performance

Historical Performance:

The ETF has a short track record, having launched in 2022. However, in its short history, it has outperformed the Solactive MLP Index by a small margin.

Benchmark Comparison:

The ETF has outperformed the Solactive MLP Index by approximately 1% since its inception. This outperformance can be attributed to the ETF's lower expense ratio and its ability to track the index closely.

Growth Trajectory

The midstream energy sector is expected to continue to grow in the coming years, driven by factors such as rising energy demand and increased infrastructure investment. This growth is expected to benefit the ETF, as it provides investors with exposure to this expanding market.

Liquidity

Average Trading Volume:

The ETF has an average trading volume of approximately 10,000 shares per day. This level of liquidity is sufficient for most investors to buy and sell shares of the ETF without significant impact on the price.

Bid-Ask Spread:

The ETF has a bid-ask spread of approximately 0.10%. This spread is relatively low, indicating that the ETF is relatively easy to trade.

Market Dynamics

The midstream energy sector is affected by factors such as:

• Energy Prices: The price of oil and natural gas can significantly impact the profitability of midstream energy companies.
• Infrastructure Investment: Government policies and regulations can impact the level of investment in midstream energy infrastructure.
• Economic Growth: A strong economy typically leads to increased energy demand, which benefits the midstream energy sector.

Competitors

Key competitors in the midstream energy ETF space include:

• Alerian MLP ETF (AMLP): Market share of 80%
• VanEck Merk Energy MLP ETF (MLPA): Market share of 10%
• JPMorgan Alerian MLP Index ETN (AMJ): Market share of 5%

Expense Ratio

The ETF has an expense ratio of 0.60%. This expense ratio is relatively low compared to other midstream energy ETFs.

Investment Approach and Strategy

Strategy:

The ETF passively tracks the Solactive MLP Index.

Composition:

The ETF invests in a basket of securities that closely mirrors the composition of the Solactive MLP Index. This includes a mix of MLPs and other energy infrastructure companies.

Key Points

• The ETF Trust For Professional Managers provides investors with exposure to the growing midstream energy sector.
• The ETF tracks the Solactive MLP Index, which offers a diversified portfolio of midstream energy companies.
• The ETF has a low expense ratio and is relatively liquid.
• The ETF is managed by a team with a proven track record in the energy sector.

Risks

The main risks associated with the ETF include:

Volatility: The midstream energy sector is subject to volatility due to factors such as energy prices and economic conditions. Market Risk: The ETF is subject to the risks associated