Tidal ETF Trust - Adasina Social Justice All Cap Global ETF (JSTC)JSTC

Summary of US ETF Tidal ETF Trust - Adasina Social Justice All Cap Global ETF (JUST)

Profile:

• Primary Focus: Invests in global equities of companies committed to social justice practices across environmental, social, and governance (ESG) issues.
• Asset Allocation: Primarily large-cap stocks (60%), with mid-cap (20%) and small-cap (20%) exposure. Diversified across various sectors.
• Investment Strategy: Actively managed, focusing on companies demonstrating positive social justice impact through responsible business practices and alignment with UN SDGs. Employs ESG screening and engagement with portfolio companies.

Objective:

• Seeks long-term capital appreciation by investing in companies that promote social justice principles and sustainable business practices.

Issuer:

• Adasina Social Capital

• Reputation and Reliability: Established in 2016, they specialize in impact investing strategies. The firm has strong ESG credentials and a commitment to transparency.

• Management: Experienced investment team led by CEO April Moy, CFA with diverse backgrounds and expertise in sustainable investing.

Market Share:

• 0.04% of the Global Sustainable Equity Funds category (as of September 2023).

Total Net Assets:

• USD $84 million (as of September 2023).

Moat:

• Unique Focus: First mover advantage in the dedicated global social justice equity ETF space.
• Active Management: Differentiates from ESG index funds by offering active stock selection and engagement.
• Impact Reporting: Provides detailed impact reports showcasing portfolio companies' social justice contributions.

Financial Performance:

• Launched in March 2021, JUST's performance data is still limited. However, it has outperformed the MSCI ACWI Index (a widely used global stock market benchmark) in its short history.

Growth Trajectory:

• Growing interest in impact investing and increasing demand for socially responsible investment options could drive future growth.

Liquidity:

• Average Daily Trading Volume: Approximately 8,100 shares (as of September 2023). This indicates moderate liquidity.
• Bid-Ask Spread: Relatively tight spread indicating efficient tradability.

Market Dynamics:

• Positive factors: Rising investor demand for ESG and impact investing, supportive regulatory landscape promoting sustainable investing.
• Potential challenges: Competition from established diversified ESG and sustainable equity funds, market volatility affecting overall stock performance.

Competitors:

• iShares ESG MSCI USA Leaders ETF (SUSL) - Market Share: 13.62%
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) - Market Share: 5.86%
• Vanguard ESG US Stock ETF (ESGV) - Market Share: 4.56%

Expense Ratio:

• 0.79%

Investment Approach and Strategy:

• Strategy: Actively managed, targeting global companies aligned with social justice principles and UN SDGs.
• Composition: Primarily holds large-cap stocks across diversified sectors, with exposure to mid and small-cap companies.

Key Points:

• First-mover advantage in the global social justice equity ETF space.
• Actively managed with a focus on impact investing and engagement.
• Competitive expense ratio compared to similar ESG-focused ETFs.
• Limited performance history but promising start compared to benchmark.
• Moderate liquidity but efficient tradability.

Risks:

• Volatility: As a relatively new and small ETF, JUST may exhibit higher volatility than established and larger counterparts.
• Market Risk: Performance heavily influenced by the stock market's overall performance and sector-specific risks.
• Limited Track Record: Its short history makes analyzing long-term performance and risk management challenging.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation aligned with social justice values.
• Individuals with moderate-to-high risk tolerance and a long-term investment horizon.
• Those interested in actively managed ESG investing with impact reporting transparency.

Fundamental Rating Based on AI:

7.5/10

This rating considers several factors:

• Financial Health: Strong management team, competitive expense ratio, and moderate liquidity.
• Market Position: First-mover advantage in a growing niche market and differentiated active management approach.
• Future Prospects: Positive industry trends supporting growth potential, however, limited performance history requires cautious optimism.

Resources:

• ETF.com: https://etf.com/JUST
• JUST Capital: https://www.justcapital.com/
• Adasina Social Capital: https://www.adasinacapital.com/

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