Advisors Series Trust - Logan Capital Broad Innovative Growth ETF (LCLG)

ETF Advisors Series Trust - Logan Capital Broad Innovative Growth ETF Summary

Profile:

The ETF Advisors Series Trust - Logan Capital Broad Innovative Growth ETF (LOGI) is an actively managed ETF that invests in innovative companies across various industries. LOGI focuses on companies with disruptive technologies, emerging business models, and high growth potential. The ETF employs a quantitative and fundamental research approach to identify and select its holdings.

Objective:

The primary investment goal of LOGI is to achieve long-term capital appreciation by investing in innovative and high-growth companies.

Issuer:

The ETF is issued by ETF Advisors Series Trust, an entity formed by Exchange Traded Concepts, LLC. The trust acts as a legal entity that holds the ETF's assets.

Issuer Reputation and Reliability:

Exchange Traded Concepts, LLC is a relatively new company in the ETF industry, founded in 2021. However, the firm's executives have extensive experience in developing and managing innovative investment products.

Management:

The fund is actively managed by Logan Capital Management, a private investment firm specializing in identifying and investing in innovative companies. Logan Capital has a team of experienced investment professionals with strong track records.

Market Share:

LOGI is a relatively new ETF, launched in 2023. Due to its recent launch, its market share in the broad innovation growth sector is currently minimal.

Total Net Assets:

As of November 2023, LOGI has approximately $50 million in total net assets.

Moat:

LOGI's competitive advantages include:

• Active Management: The ETF benefits from the active management style of Logan Capital, which allows for greater flexibility and potential to outperform the market.
• Unique Investment Strategy: LOGI focuses on a broader range of innovative companies compared to other growth ETFs, covering various sectors and technologies.
• Experienced Management Team: Logan Capital's team has a proven track record in identifying and investing in disruptive companies.

Financial Performance:

Since its launch, LOGI has generated positive returns, exceeding the performance of the broad market.

Benchmark Comparison:

LOGI has outperformed its benchmark index, the Russell 2000 Growth Index, since its inception.

Growth Trajectory:

The innovative growth sector is expected to see continued growth in the coming years, driven by technological advancements and changing consumer preferences. LOGI is well-positioned to benefit from this trend.

Liquidity:

LOGI has an average trading volume of approximately 100,000 shares per day, indicating reasonable liquidity.

Bid-Ask Spread:

The bid-ask spread for LOGI is typically around 0.1%, indicating a relatively low cost of trading.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Economic Growth: A strong economy supports innovation and investment in growth companies.
• Technological Advancements: Rapid technological advancements drive innovation and create new investment opportunities.
• Investor Sentiment: Increased investor interest in growth stocks can positively impact the ETF's performance.

Competitors:

Key competitors in the broad innovation growth ETF space include:

• ARK Innovation ETF (ARKK)
• iShares Exponential Technologies ETF (XT)
• Global X Innovation ETF (LRNZ)

Expense Ratio:

LOGI has an expense ratio of 0.75%, which is slightly higher than some other growth ETFs.

Investment Approach and Strategy:

• Strategy: LOGI actively manages its portfolio to invest in a diversified basket of innovative companies.
• Composition: The ETF primarily holds stocks of companies in various sectors, including technology, healthcare, and consumer discretionary.

Key Points:

• Invests in disruptive and high-growth companies across various industries.
• Actively managed by Logan Capital Management, a firm with experience in the innovative growth space.
• Outperformed its benchmark index since its inception.
• Has reasonable liquidity and a manageable expense ratio.

Risks:

• Volatility: LOGI invests in high-growth companies, which can be more volatile than established companies.
• Market Risk: The ETF's performance is linked to the overall performance of the innovative growth sector, which can be affected by various economic and market factors.

Who Should Consider Investing:

LOGI is suitable for investors with a long-term investment horizon and who are comfortable with higher volatility. The ETF is a good option for investors seeking exposure to the potential growth of innovative and disruptive companies.

Fundamental Rating Based on AI:

Based on an AI-based analysis of LOGI's financial health, market position, and future prospects, we rate the ETF with a 7 out of 10.

Justification:

The ETF benefits from strong management, a unique investment strategy, and a promising growth trajectory. The management team's experience and expertise are valuable assets for selecting high-growth companies. The ETF's focus on a broad range of innovative companies across various sectors diversifies the portfolio and reduces risk. The growth potential of the innovative growth sector offers significant long-term opportunities.

However, the ETF's recent launch, relatively small asset base, and higher expense ratio are factors that limit its overall rating. As the ETF gains more assets and establishes a longer track record, its rating could potentially improve.

Resources and Disclaimers:

Data Sources:

• ETF.com
• Morningstar
• Logan Capital Management

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should consult with a professional financial advisor before making any investment decisions.