Tidal ETF Trust - ATAC Credit Rotation ETF (JOJO)

Overview

The ATAC Credit Rotation ETF (JOJO) is an actively managed ETF that seeks total return by rotating among different credit asset classes based on macroeconomic conditions and relative value opportunities. It aims to outperform the broad credit market by strategically allocating capital to sectors with the most attractive risk-adjusted returns.

Reputation and Reliability

Tidal ETF Trust is a relatively newer issuer in the ETF space, focused on providing innovative and niche investment solutions. Its reputation is still developing.

Management Expertise

The management team leverages quantitative and qualitative analysis to identify and exploit inefficiencies in the credit market.

Goal

To seek total return by rotating among different credit asset classes.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not track a specific index. It uses a dynamic asset allocation approach based on macroeconomic analysis and relative value.

Composition The ETF invests in a mix of credit asset classes, including high-yield bonds, investment-grade corporate bonds, emerging market debt, and other credit-related instruments.

Market Share: Relatively small market share compared to larger, established credit ETFs.

Total Net Assets (AUM): 37723630

Key Competitors

• AGG
• LQD
• HYG
• JNK
• IEF

Competitive Landscape

The credit ETF market is highly competitive, dominated by large, passively managed funds. JOJO differentiates itself through active management and a flexible credit rotation strategy. It faces the challenge of demonstrating consistent outperformance to justify its higher expense ratio compared to passive competitors. Its actively managed structure may be an advantage in certain market conditions and a disadvantage in others.

Historical Performance: Historical performance data should be analyzed over various time periods (e.g., 1-year, 3-year, 5-year) to assess its track record. [Data needs to be populated from external sources.]

Benchmark Comparison: Compare JOJO's performance against a broad credit market benchmark, such as the Bloomberg Barclays U.S. Aggregate Bond Index, to evaluate its effectiveness.

Expense Ratio: 0.9

Average Trading Volume

Average trading volume can be relatively low, which can impact execution costs.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, reflecting lower trading volume.

Market Environment Factors

Economic growth, interest rate movements, credit spreads, and inflation expectations influence JOJO's performance.

Growth Trajectory

Growth is dependent on attracting assets through demonstrated outperformance and effective marketing. Changes to strategy and holdings will depend on economic outlook.

Competitive Edge

JOJO's competitive edge lies in its active management and credit rotation strategy, allowing it to adapt to changing market conditions. The fund's ability to tactically allocate capital to undervalued credit sectors can potentially generate higher risk-adjusted returns. However, success relies heavily on the expertise and decision-making of the management team. This active approach distinguishes it from passive, index-tracking competitors, but also introduces potential for underperformance relative to the benchmark.

Volatility

Volatility will depend on the specific credit asset classes held by the ETF at any given time. Higher allocation to high-yield bonds or emerging market debt can increase volatility.

Market Risk

JOJO is subject to credit risk (default risk of issuers), interest rate risk (sensitivity to changes in interest rates), and liquidity risk (difficulty in selling certain holdings).

Ideal Investor Profile

Investors seeking enhanced returns from active credit management and willing to accept a higher expense ratio. Those who understand and are comfortable with active strategies.

Market Risk

Suitable for investors with a moderate to high risk tolerance and a longer-term investment horizon.

The ATAC Credit Rotation ETF (JOJO) is an actively managed fund that aims to outperform the broad credit market by rotating among different credit asset classes. Its success is heavily dependent on the management team's ability to accurately assess macroeconomic conditions and relative value opportunities. It carries a higher expense ratio than passive ETFs. Investors should carefully consider their risk tolerance and investment goals before investing in JOJO.

• HYG
• JNK
• TLT
• IEF
• LQD

Data Sources:

• Tidal ETF Trust Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It is not financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.