Tidal ETF Trust - ATAC Credit Rotation ETF (JOJO)

ETF Tidal ETF Trust - ATAC Credit Rotation ETF Summary:

Profile:

• Focus: The ETF invests in a diversified portfolio of below investment grade U.S. corporate bonds.
• Asset Allocation: Primarily fixed income, with exposure to various credit qualities and maturities.
• Investment Strategy: Actively managed, employing a credit rotation strategy aiming to outperform the broad high yield market in volatile environments.

Objective:

• Generate high current income and long-term capital appreciation.

Issuer:

• Name: Tidal ETF Trust
• Reputation and Reliability: Relatively new issuer with limited track record.
• Management: Management team with experience in fixed income investing and credit research.

Market Share:

• Not readily available.

Total Net Assets:

• $28.6 million (as of October 26, 2023)

Moat:

• Active management expertise – aims to outperform during challenging market conditions.
• Unique credit rotation approach – seeks to identify and capitalize on opportunities in various market segments.

Financial Performance:

• Historical Returns: Limited data available due to recent launch.
• Benchmark Comparison: Data not readily available.

Growth Trajectory:

• Potentially promising as the ETF caters to investors seeking actively managed fixed income solutions.

Liquidity:

• Average Trading Volume: $1.5 million (as of October 26, 2023)
• Bid-Ask Spread: Tight

Market Dynamics:

• Affected by interest rate changes, economic conditions, and credit market dynamics.
• High yield market can be volatile.

Competitors:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG): Market share leader with over $30 billion in assets.
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK): Another large competitor with over $26 billion in assets.

Expense Ratio:

• 0.75%

Investment Approach:

• Employs a credit rotation strategy – actively adjusting portfolio composition by credit quality and maturity based on market conditions.
• Invests in a diversified basket of corporate bonds.

Key Points:

• Actively managed credit rotation strategy.
• Potential for high current income and long-term capital appreciation.
• Relatively new ETF with limited track record.
• Tight bid-ask spread indicating good liquidity.

Risks:

• Credit risk: Bonds carry default risk, which can impact returns.
• Interest rate risk: Rising rates can negatively impact bond prices.
• Market volatility: High yield market can be prone to significant price swings.

Who Should Consider Investing:

• Investors seeking higher income and capital appreciation potential from a actively managed corporate bond portfolio.
• Investors with higher risk tolerance.

Fundamental Rating Based on AI (1-10): 7

• Justification: The ETF offers a unique credit rotation approach with experienced management. However, its recent launch limits access to historical performance data, and market share information is not readily available. Future performance and market share growth will influence the rating over time.

Resources:

• Tidal ETF Trust website: https://tidaletf.com/
• ETF.com: https://www.etf.com/ATAC

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.