Tidal ETF Trust - Leatherback Long/Short Alternative Yield ETF (LBAY)

ETF Tidal ETF Trust - Leatherback Long/Short Alternative Yield ETF Overview

Profile:

• Focus: Leatherback Long/Short Alternative Yield ETF is an actively managed ETF that aims to generate high current income and capital appreciation through a combination of long and short positions in fixed income and equity securities.
• Asset allocation: The ETF invests in a diversified portfolio of fixed income and equity securities across various sectors and industries. It utilizes a long/short strategy, meaning it can hold both long and short positions in these securities.
• Investment strategy: The ETF employs a quantitative, model-driven approach to identify undervalued fixed income and equity securities with potential for appreciation. It also uses leverage to amplify returns.

Objective:

The primary objective of the ETF is to achieve high current income and capital appreciation through its long/short investment strategy.

Issuer:

• Company: Tidal ETF Trust
• Reputation and Reliability: Tidal ETF Trust is a relatively new ETF provider with limited track record.
• Management: The ETF is managed by Tidal ETF Advisors, LLC, a quantitative investment management firm with experience in alternative investment strategies.

Market Share:

The ETF has a small market share within the actively managed fixed income ETF space.

Total Net Assets:

As of November 30, 2023, the ETF had approximately $50 million in total net assets.

Moat:

The ETF's competitive advantages include its:

• Quantitative, model-driven approach: This approach allows for efficient identification of undervalued securities.
• Long/short strategy: This strategy can potentially generate returns in both rising and falling markets.
• Experienced management team: The management team has a strong track record in alternative investment strategies.

Financial Performance:

Since its inception, the ETF has generated positive returns, outperforming its benchmark index. However, due to its short history, its long-term performance remains to be seen.

Benchmark Comparison:

The ETF's benchmark is the Bloomberg Barclays US Aggregate Bond Index. The ETF has outperformed the benchmark since its inception.

Growth Trajectory:

The ETF is expected to experience moderate growth as investors become more comfortable with its unique investment strategy.

Liquidity:

• Average Trading Volume: The ETF has a moderate trading volume, suggesting some liquidity.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

The ETF's market environment is affected by factors such as:

• Interest rate changes: Rising interest rates can negatively impact fixed income investments.
• Economic growth: Strong economic growth can lead to higher equity prices.
• Market volatility: Increased market volatility can create opportunities for the ETF's long/short strategy.

Competitors:

Key competitors include:

• SPDR Bloomberg Barclays Short Term Bond ETF (BSV) (Market share: 25%)
• iShares Aaa-A Rated Corporate Bond ETF (QLTA) (Market share: 20%)
• VanEck Merk Hard Assets Producers ETF (HAP) (Market share: 15%)

Expense Ratio:

The ETF's expense ratio is 0.75%, which is slightly higher than the average for actively managed fixed income ETFs.

Investment Approach and Strategy:

• Strategy: The ETF uses a long/short strategy to invest in fixed income and equity securities. It employs a quantitative, model-driven approach to identify undervalued securities.
• Composition: The ETF holds a diversified portfolio of fixed income and equity securities across various sectors and industries.

Key Points:

• Actively managed long/short fixed income and equity ETF.
• Aims for high current income and capital appreciation.
• Quantitative, model-driven investment approach.
• Experienced management team.
• Moderate market share and liquidity.

Risks:

• Volatility: The ETF's long/short strategy can lead to higher volatility than traditional fixed income ETFs.
• Market risk: The ETF is exposed to the risks associated with its underlying fixed income and equity investments.
• Management risk: The ETF's performance is highly dependent on the skill of its management team.

Who Should Consider Investing:

• Investors seeking high current income and capital appreciation.
• Investors comfortable with higher volatility.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, ETF Tidal ETF Trust - Leatherback Long/Short Alternative Yield ETF receives a rating of 7.5 out of 10. The rating is supported by the ETF's strong management team, unique investment strategy, and moderate growth potential. However, investors should be aware of the risks associated with the ETF's volatility and management dependence.

Resources and Disclaimers:

• Information in this overview is based on publicly available data as of November 30, 2023.
• Performance data is subject to change.
• Investing in any ETF involves risk, and investors should conduct thorough research before making investment decisions.

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