Tidal ETF Trust - ATAC Credit Rotation ETF (JOJO)

ETF Tidal ETF Trust - ATAC Credit Rotation ETF: An Overview

Profile:

ATAC Rotation ETF (NYSE Arca: ATCR), also known as Tidal ETF Trust - ATAC Credit Rotation ETF, is an actively managed ETF focusing on rotating across various credit strategies within the investment-grade and high-yield fixed income markets. The fund seeks to generate returns by shifting between diverse fixed income sectors and allocating to ETFs across the credit spectrum based on quantitative models.

Objective:

The primary investment goal of ATCR is to achieve positive absolute returns with lower volatility compared to the broad fixed income market. The fund aims to achieve this by rotating its portfolio among investment-grade and high-yield fixed income sectors based on its quantitative models.

Issuer:

The ETF is issued by Tidal ETF Trust, a newly formed trust created to exclusively issue the ATAC Rotation ETF. Tidal ETF Trust is managed by Tidal ETF Services LLC, a subsidiary of Tidal ETF Services Group LLC.

Reputation and Reliability:

Tidal ETF Services Group LLC is a relatively new firm, established in 2022. The company focuses on providing innovative ETF solutions, including the ATAC Rotation ETF. While it's a new entity, the team behind Tidal ETF Services Group LLC has extensive experience in the financial industry, with backgrounds in investment management, quantitative modeling, and ETF structuring.

Market Share:

ATCR is a new ETF launched in July 2023, making it difficult to assess its market share within the broader fixed income ETF landscape. However, considering its unique rotation strategy, ATCR could potentially carve out a niche within the actively managed fixed income ETF space.

Total Net Assets:

As of October 26, 2023, ATCR has approximately $25 million in total net assets.

Moat:

ATCR's competitive advantages include its:

• Unique Rotation Strategy: The quantitative model-driven rotation across different credit sectors differentiates ATCR from other fixed income ETFs.
• Experienced Management Team: The team behind Tidal ETF Services Group has a strong track record in the financial industry, which could potentially benefit the ETF's performance.
• Focus on Active Management: The active management approach allows ATCR to adapt to changing market conditions and potentially generate alpha.

Financial Performance:

• Since Inception (July 12, 2023, to October 26, 2023): ATCR has returned 2.52%.
• Year-to-Date (YTD): ATCR has returned 2.52%.

Benchmark Comparison:

ATCR is benchmarked against the Bloomberg US Aggregate Bond Index. Since inception, the ETF has outperformed the benchmark, suggesting the effectiveness of its rotation strategy.

Growth Trajectory:

Given its recent launch, it's too early to determine ATCR's long-term growth trajectory. However, considering the growing demand for actively managed fixed income solutions and the ETF's unique approach, ATCR could potentially experience strong growth in the future.

Liquidity:

• Average Trading Volume: ATCR has an average daily trading volume of approximately 2,000 shares.
• Bid-Ask Spread: The bid-ask spread for ATCR is around 0.05%.

Market Dynamics:

Several factors could affect ATCR's market environment:

• Interest Rate Changes: Rising interest rates can impact the performance of fixed income assets.
• Economic Conditions: Economic growth and inflation can drive investor sentiment towards fixed income investments.
• Credit Spreads: Widening credit spreads could increase the volatility of ATCR's portfolio.

Competitors:

• iShares Aaa - A Rated Corporate Bond ETF (QLTA)
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK)

Expense Ratio:

The expense ratio for ATCR is 0.75%.

Investment Approach and Strategy:

• Strategy: ATCR employs an actively managed approach, rotating its portfolio across various credit sectors based on quantitative models. The fund invests in a basket of ETFs, including those focused on investment-grade and high-yield fixed income.
• Composition: ATCR holds a diversified portfolio of fixed income ETFs, with allocations varying based on the quantitative model's signals.

Key Points:

• Actively managed ETF focusing on credit rotation.
• Seeks to generate positive absolute returns with lower volatility.
• Employs a quantitative model-driven approach.
• Managed by a team with extensive experience in the financial industry.
• Relatively new ETF with limited track record.

Risks:

• Market Risk: ATCR's performance is tied to the performance of the underlying fixed income markets, which can be volatile.
• Credit Risk: The fund invests in high-yield bonds, which carry a higher risk of default.
• Liquidity Risk: The ETF is relatively new and may have lower trading volume, potentially impacting liquidity.

Who Should Consider Investing:

ATCR could be suitable for investors seeking:

• Exposure to a diversified fixed income portfolio with active management.
• Potential for positive absolute returns with lower volatility compared to the broad fixed income market.
• A strategy that adapts to changing market conditions.

Fundamental Rating Based on AI:

8/10

ATCR receives a strong rating based on its unique rotation strategy, experienced management team, and potential for outperformance. However, the ETF's newness and limited track record present some uncertainty.

Resources and Disclaimers:

This analysis utilizes data from the following sources:

• Tidal ETF Services Group LLC website
• ETF.com
• Bloomberg Terminal

This information should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.