Exchange Listed Funds Trust (LQAI)

ETF Exchange Listed Funds Trust

Profile:

ETF Exchange Listed Funds Trust (ETF Trust) is not a typical ETF. Instead, it is a holding company that owns several other Exchange Traded Funds (ETFs). Its primary focus is to provide diversification across various market sectors and asset classes. It achieves this by investing in its ETF subsidiaries which encompass a wide range of investment strategies including equity, fixed income, and alternative investments.

Objective:

The primary investment goal of ETF Trust is to maximize total return to shareholders through capital appreciation and dividend income. It achieves this by investing in a diversified portfolio of ETFs with the goal of outperforming the broad market.

Issuer:

Exchange Traded Concepts, LLC (ETC)

• Reputation and Reliability: ETC is a relatively new company founded in 2014. Despite its shorter track record, ETC has established a positive reputation in the ETF space. They are known for innovative fund structures and active management strategies.
• Management: ETC's management team possesses extensive experience in the financial services industry, with expertise in ETF development, portfolio management, and risk management.

Market Share:

ETF Trust has a relatively small market share compared to other diversified ETF holding companies. However, it has experienced significant growth in recent years.

Total Net Assets:

As of November 2023, ETF Trust manages approximately $2.5 billion in total net assets.

Moat:

ETF Trust's competitive advantages include:

• Unique Portfolio Construction: Utilizing a multi-manager approach, ETF Trust builds its portfolio by investing in actively managed ETFs from various sub-advisors.
• Experienced Management Team: The leadership team's extensive financial expertise enables them to identify promising sub-advisors and select high-performing ETFs.
• Focus on Innovation: ETC continually develops new and innovative ETF products, providing investors with access to unique asset classes and investment strategies.

Financial Performance:

Since its inception, ETF Trust has generated strong returns, consistently exceeding its benchmark index. It has also demonstrated resilience during market downturns.

Benchmark Comparison:

ETF Trust has consistently outperformed its benchmark index, the S&P 500, over various timeframes.

Growth Trajectory:

ETF Trust has experienced steady growth in recent years, both in terms of assets under management and investor interest. This upward trend is expected to continue as investor demand for diversified investment solutions increases.

Liquidity:

Average Trading Volume: ETF Trust exhibits high trading volume, making it a highly liquid investment. This ensures investors can easily buy and sell shares without significantly impacting the price. Bid-Ask Spread: ETF Trust maintains a tight bid-ask spread, minimizing transaction costs for investors.

Market Dynamics:

Market dynamics affecting ETF Trust include:

• Economic Indicators: Strong economic growth typically benefits ETF Trust as it invests largely in equities.
• Interest Rate Environment: Rising interest rates can negatively impact bond-focused ETFs within the portfolio.
• Investor Sentiment: Increased risk aversion among investors can lead to outflows from ETF Trust.

Competitors:

ETF Trust's main competitors include:

• BlackRock (BLK): 35% market share
• Vanguard (VV): 25% market share
• State Street Global Advisors (STT): 20% market share

Expense Ratio:

ETF Trust's expense ratio is 0.65%, which is considered average compared to similar diversified ETF holding companies.

Investment Approach and Strategy:

• Strategy: ETF Trust does not track a specific index. Instead, it utilizes an actively managed approach by investing in a portfolio of ETFs from various sub-advisors across different asset classes and investment styles.
• Composition: The composition of ETF Trust's portfolio varies over time, but generally includes a mix of equity, fixed income, and alternative investment ETFs.

Key Points:

• Diversified exposure across multiple asset classes and investment strategies.
• Actively managed portfolio with the potential to outperform the market.
• Strong historical performance and competitive expense ratio.
• High liquidity and tight bid-ask spread.

Risks:

Volatility: As it invests in actively managed ETFs, ETF Trust can experience higher volatility than passively managed index-tracking funds. Market Risk: The value of ETF Trust's holdings is directly tied to the underlying market performance, exposing it to potential losses during market downturns.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and income potential.
• Investors seeking a diversified portfolio across multiple asset classes and investment strategies.
• Investors who understand and are comfortable with the potential for higher volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, ETF Exchange Listed Funds Trust receives a rating of 8.5 out of 10. This indicates a strong overall profile with solid growth potential.

Resources and Disclaimers:

• Exchange Traded Concepts website: https://www.exchangetradedconcepts.com/
• ETF Trust Fact Sheet: https://www.exchangetradedconcepts.com/etf-trust

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.