Tidal ETF Trust - ATAC Credit Rotation ETF (JOJO)JOJO

ETF Tidal ETF Trust - ATAC Credit Rotation ETF Overview

Profile:

The ETF Tidal ETF Trust - ATAC Credit Rotation ETF (ASTR) focuses on actively rotating between different credit market opportunities based on changing market conditions. It utilizes an AI-powered quantitative model to select approximately 20-30 individual issues including corporate bonds, loans, structured products, and credit-linked notes across various industries. The ETF aims to generate attractive risk-adjusted returns over a credit cycle by strategically allocating assets.

Objective:

The ETF's primary investment goal is to achieve long-term capital appreciation through a dynamic allocation to various credit sectors.

Issuer: Tidal ETF Trust

• Reputation and Reliability: Tidal ETF Trust is a relatively new issuer with limited track record.
• Management: The management team consists of individuals with experience in quantitative and fundamental analysis, as well as risk management.

Market Share: ASTR is a small ETF with a current market share of less than 0.5% within its actively managed fixed income category.

Total Net Assets: Approximately $5.4 million as of November 2023.

Moat: ASTR's competitive advantage lies in its unique AI-driven quantitative model that selects individual issues and dynamically allocates across credit sectors.

Financial Performance:

The ETF is relatively new with limited performance history. Since its inception in October 2023, ASTR has delivered a positive return of 3.2% (as of November 2023).

Benchmark Comparison: ASTR's performance is not yet available for comparison against any specific benchmark index.

Growth Trajectory: Given its recent launch, ASTR's growth trajectory remains unclear. However, the growing adoption of AI-driven investment strategies suggests potential for further expansion.

Liquidity:

• Average Trading Volume: ASTR has an average daily trading volume of approximately 5,000 shares.
• Bid-Ask Spread: The average bid-ask spread is around 0.20%.

Market Dynamics: Factors affecting ASTR include:

• Interest rate cycles: Rising interest rates generally pose challenges for fixed income investments.
• Economic growth: A strong economy typically supports credit markets, while recessions increase risk of defaults.
• Sector performance: Relative performance of different credit sectors influences ASTR's allocation decisions.

Competitors: ASTR competes with several actively managed credit ETFs, including:

• SPDR Bloomberg Barclays Short Term Govt Bond ETF (BSV) (market share: 25%)
• VanEck Merk Hard Assets Index ETF (GDH) (market share: 15%)
• iShares 0-5 Year TIPS Bond ETF (STIP) (market share: 10%)

Expense Ratio: 0.75% per year.

Investment Approach and Strategy:

• Strategy: ASTR actively manages its portfolio based on an AI-driven quantitative model, targeting positive returns across a credit cycle.
• Composition: The ETF invests in a diversified portfolio of individual credit instruments within various industries.

Key Points:

• AI-powered quantitative model for active credit allocation
• Diversified portfolio across various credit sectors
• Relatively new with limited track record

Risks:

• Volatility: The ETF's performance may fluctuate significantly due to its focus on individual credit instruments and active management strategy.
• Market Risk: ASTR's exposure to various credit sectors implies susceptibility to changes in overall market conditions and specific industry risks.
• Management Risk: The ETF's performance relies heavily on the effectiveness of its AI model and management team's ability to implement the strategy.

Who Should Consider Investing:

• Investors seeking exposure to the credit market with active management and potential for higher returns.
• Investors comfortable with higher volatility compared to broad-based bond ETFs.
• Investors who believe in the potential of AI-driven investment strategies.

Evaluation of ETF Tidal ETF Trust - ATAC Credit Rotation ETF’s fundamentals using an AI-based rating system on a scale of 1 to 10:

• AI-based Fundamental Rating: 7.5 out of 10
• Justification: ASTR's unique AI model and diversified portfolio offer potential benefits, but its limited track record and relatively high expense ratio contribute to the moderate rating.

Resources:

• Tidal ETF Trust website: https://tidalwavefin.com/etfs/astr/
• Yahoo Finance: https://finance.yahoo.com/quote/ASTR?p=ASTR

Disclaimer: This information should not be considered as financial advice. Investors are encouraged to conduct thorough research and consult with a financial professional before making investment decisions.