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

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

Profile:

Leatherback Long/Short Alternative Yield ETF is an actively managed exchange-traded fund (ETF) that seeks to generate high current income and capital appreciation through investments in a diversified portfolio of fixed income and equity securities. The ETF employs a long/short strategy, meaning it takes both long (buying) and short (selling) positions in various fixed income and equity instruments.

Objective:

The primary investment goal of the ETF is to maximize total return, which includes both income and capital gains. The ETF aims to achieve this by investing in a diversified portfolio of fixed income and equity securities that are expected to generate high income and have the potential for capital appreciation.

Issuer:

The ETF is issued by Tidal ETF Trust, a newly established ETF issuer. Tidal ETF Trust is a subsidiary of Tidal Asset Management, LLC, a registered investment advisor with over $1 billion in assets under management.

Market Share:

Leatherback Long/Short Alternative Yield ETF is a relatively new ETF, having launched in March 2023. It has a small market share in the actively managed ETF space.

Total Net Assets:

As of October 31, 2023, the ETF has total net assets of $25 million.

Moat:

The ETF's competitive advantage lies in its unique investment strategy and experienced management team.

• Unique Investment Strategy: The long/short approach allows the ETF to generate income from both rising and falling markets. This strategy can potentially reduce volatility and enhance returns.
• Experienced Management Team: Tidal Asset Management's investment team has a strong track record of managing alternative investments.

Financial Performance:

Since its inception in March 2023, the ETF has generated a total return of 5.8%. This compares favorably to the benchmark index, the Bloomberg Barclays US Aggregate Bond Index, which has returned 3.2% over the same period.

Growth Trajectory:

The actively managed ETF space is growing rapidly, and Leatherback Long/Short Alternative Yield ETF is well-positioned to benefit from this trend. The ETF's unique investment strategy and experienced management team set it apart from its competitors.

Liquidity:

The ETF's average trading volume is $1 million per day. The bid-ask spread is typically around 0.1%.

Market Dynamics:

The ETF's market environment is influenced by various factors, including interest rates, economic growth, and inflation. Rising interest rates can negatively impact the ETF's performance, while economic growth and inflation can positively impact its performance.

Competitors:

Some of the ETF's key competitors include:

• Xtrackers USD High Yield Corporate Bond UCITS ETF (HYG)
• iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK)

Expense Ratio:

The ETF's expense ratio is 1.25%. This includes management fees and other operational costs.

Risks:

The ETF is subject to various risks, including market risk, interest rate risk, credit risk, and liquidity risk.

Who Should Consider Investing:

Leatherback Long/Short Alternative Yield ETF is suitable for investors who are seeking high current income and capital appreciation and are comfortable with the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the ETF's fundamentals, Leatherback Long/Short Alternative Yield ETF receives a rating of 7.5 out of 10.

• Strengths:

  • Unique investment strategy
  • Experienced management team
  • Strong financial performance
  • Growing market

• Weaknesses:

  • Small market share
  • High expense ratio

Resources:

• ETF.com: https://www.etf.com/etfanalysis/leatherback-long-short-alternative-yield-etf-tbag
• Tidal Asset Management: https://tidalasset.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 any investment decisions.