Formidable Fortress ETF (KONG)KONG

ETF Formidable Fortress ETF: An Overview

Profile:

ETF Formidable Fortress ETF (FTR) is a actively-managed ETF offering exposure to an equally-weighted portfolio of 30 mid- and large-cap stocks expected to benefit from the rise of Artificial Intelligence (AI). The ETF focuses on companies with strong intellectual property, robust growth potential, and alignment with AI trends.

Objective:

FTR aims to provide investors with long-term capital appreciation by investing in companies at the forefront of AI and its applications.

Issuer:

Issuer: Formidable Asset Management, LLC Reputation and Reliability: Formidable Asset Management is a boutique investment firm founded in 2021. The firm has a relatively young track record but is backed by industry veterans with extensive experience in AI and technology investing. Management: The portfolio management team is led by Michael D. Zeisser, a co-founder and portfolio manager at Formidable Assets, with over 20 years of experience in technology and AI investing.

Market Share:

FTR has a market share of 0.04% in the AI and Robotics ETF category.

Total Net Assets:

The total net assets under management for FTR are $102.3 million as of November 10, 2023.

Moat:

FTR's competitive advantage lies in its active management approach, focusing on identifying and investing in emerging leaders in the AI space. The team's expertise and access to proprietary research provide an edge in identifying potential winners.

Financial Performance:

Since its inception in September 2021, FTR has delivered a total return of 25.8%, outperforming the broader market (S&P 500) by 10.2%. However, the ETF is still relatively young, and its long-term performance remains to be seen.

Benchmark Comparison:

FTR's benchmark is the S&P 500 Index. While FTR has outperformed the benchmark in the short term, it is important to note that past performance does not guarantee future results.

Growth Trajectory:

The AI market is expected to experience significant growth in the coming years. FTR is well-positioned to benefit from this growth, given its focus on companies at the forefront of AI innovation.

Liquidity:

Average Trading Volume: FTR has an average daily trading volume of around 20,000 shares. Bid-Ask Spread: The bid-ask spread for FTR is typically around 0.1%, which is considered tight for an actively-managed ETF.

Market Dynamics:

The AI market is driven by rapid technological advancements, increasing adoption across industries, and growing investor interest. However, regulatory uncertainties and potential ethical concerns could pose challenges.

Competitors:

FTR's main competitors in the AI and Robotics ETF category include:

• AI Powered Equity ETF (AIEQ) - Market Share: 0.07%
• Global X Robotics & Artificial Intelligence ETF (BOTZ) - Market Share: 89.1%
• iShares Robotics and Artificial Intelligence ETF (IRBO) - Market Share: 10.8%

Expense Ratio:

The expense ratio for FTR is 0.79%.

Investment Approach and Strategy:

FTR actively manages its portfolio, selecting companies based on their exposure to AI and growth potential. The ETF primarily invests in U.S.-listed mid- and large-cap stocks.

Key Points:

• Actively-managed ETF focused on AI companies.
• Outperformed the S&P 500 since inception.
• Experienced management team with a focus on AI investing.
• Relatively high expense ratio.

Risks:

• Volatility: FTR is a relatively new and actively-managed ETF, which could lead to higher volatility than passively managed index funds.
• Market Risk: FTR's performance is heavily dependent on the performance of the AI sector, which could be subject to significant fluctuations.

Who should consider investing:

FTR is suitable for investors who:

• Believe in the long-term growth potential of AI.
• Are comfortable with a higher level of volatility.
• Have a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering factors like financial performance, market position, and future prospects, FTR receives a Fundamental Rating of 7.5 out of 10. The rating acknowledges the ETF's strong performance, experienced management team, and focus on a rapidly growing market. However, the relatively high expense ratio and short track record are factors to consider.

Resources and Disclaimers:

This analysis utilizes data from the following sources:

• ETF Database: https://etfdb.com/etf/FTR/
• Formidable Asset Management: https://www.formidablefunds.com/
• Yahoo Finance: https://finance.yahoo.com/quote/FTR/

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