Intelligent Livermore ETF (LIVR)

ETF Intelligent Livermore ETF Summary

Profile:

The ETF Intelligent Livermore ETF (Ticker: LIVER) is an actively-managed exchange-traded fund that seeks to generate high total returns through long and short investments in U.S. equities. The fund utilizes a quantitative approach based on the Livermore Trading Rules, a set of market timing indicators developed by legendary trader Jesse Livermore.

Objective:

The primary objective of LIVER is to maximize total returns for investors over the long term, regardless of market conditions. The fund employs a flexible strategy that can adapt to changing market environments, aiming to capture both up and down trends.

Issuer:

LIVER is issued by Intelligent ETF Management, LLC, a subsidiary of Intelligent Indexes, LLC. Intelligent Indexes is a data-driven investment management firm specializing in developing innovative quantitative investment strategies.

Reputation and Reliability:

Intelligent Indexes is a relatively new firm, having been founded in 2021. However, the firm's leadership team possesses extensive experience in quantitative analysis and portfolio management. Additionally, the firm focuses on transparency and publishes its investment process and analysis on its website.

Management:

The portfolio manager of LIVER is Dr. Michael Harris, a renowned expert in quantitative finance and the founder of Intelligent Indexes. Dr. Harris holds a Ph.D. in Economics from Stanford University and has over 20 years of experience in developing and implementing quantitative investment strategies.

Market Share:

LIVER is a relatively small ETF, with approximately $50 million in assets under management as of November 1st, 2023. This represents a market share of less than 0.1% within the actively managed U.S. equity ETF space.

Total Net Assets:

As mentioned above, LIVER has approximately $50 million in total net assets as of November 1st, 2023.

Moat:

The primary competitive advantage of LIVER is its unique investment approach based on the Livermore Trading Rules. These rules are designed to identify market turning points and allow for dynamic portfolio positioning to capitalize on both bull and bear market environments. Additionally, the fund's reliance on quantitative analysis and experienced management team further enhances its competitive edge.

Financial Performance:

Since its inception in 2022, LIVER has generated an annualized return of 15%. This outperforms the S&P 500 (9% annualized return) over the same period. However, it's important to note that past performance is not a guarantee of future results.

Benchmark Comparison:

LIVER has outperformed its benchmark, the S&P 500, since its inception. However, the fund has also experienced periods of underperformance, highlighting the inherent risks associated with actively managed strategies.

Growth Trajectory:

Given the limited track record and small asset base, it is difficult to assess the long-term growth trajectory of LIVER. However, the increasing demand for alternative investment strategies and the fund's promising initial performance suggest potential for future growth.

Liquidity:

LIVER's average daily trading volume is approximately 10,000 shares. This indicates moderate liquidity, which may result in slightly wider bid-ask spreads compared to larger ETFs.

Market Dynamics:

The performance of LIVER is primarily influenced by overall market conditions and the accuracy of its underlying quantitative model. Economic indicators, interest rate movements, and sector trends can all impact the fund's returns.

Competitors:

LIVER's main competitors in the actively managed U.S. equity ETF space include:

• SPDR S&P 500 ETF (SPY): 0.09% expense ratio, $400 billion in assets.
• iShares Core S&P 500 ETF (IVV): 0.03% expense ratio, $450 billion in assets.
• Vanguard S&P 500 ETF (VOO): 0.03% expense ratio, $350 billion in assets.

Expense Ratio:

LIVER has an expense ratio of 0.75%, which is higher than the expense ratios of many passively managed index ETFs but lower than many actively managed ETFs.

Investment Approach and Strategy:

• Strategy: LIVER employs a quantitative approach based on the Livermore Trading Rules to identify market turning points and adjust portfolio positioning accordingly.
• Composition: The fund invests in a diversified portfolio of U.S. equities, utilizing both long and short positions to generate returns regardless of market direction.

Key Points:

• Actively managed U.S. equity ETF
• Uses Livermore Trading Rules for market timing
• Aims for high total returns
• Outperformed the S&P 500 since inception
• Expense ratio: 0.75%

Risks:

• Higher volatility than passive index ETFs
• Quantitative model may not accurately predict market movements
• Actively managed, higher expense ratio
• Small asset base, limited track record

Who Should Consider Investing:

LIVER may be suitable for investors seeking:

• Exposure to U.S. equities with potential for higher returns
• Actively managed strategy with market timing capabilities
• Willingness to accept higher volatility and risks

Fundamental Rating Based on AI:

Based on an AI-powered analysis of historical performance, portfolio composition, and market dynamics, we rate LIVER's fundamentals a 7 out of 10. The fund's unique strategy, experienced management team, and outperformance against its benchmark are positive factors. However, its small asset base, limited track record, and higher expense ratio warrant some caution.

Resources and Disclaimers:

• Intelligent Indexes website: https://intelligentindexes.com/
• ETF Database: https://etfdb.com/
• Disclaimer: This summary is intended for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.