TrueShares Technology AI and Deep Learning ETF (LRNZ)

ETF TrueShares Technology AI and Deep Learning ETF (LRNZ)

Profile:

• Target Sector: Technology, specifically AI and Deep Learning
• Asset Allocation: Primarily invests in US-listed equities of companies involved in AI and Deep Learning
• Investment Strategy: Actively managed, aiming to outperform the Solactive Artificial Intelligence & Deep Learning Index

Objective:

• To provide investors with long-term capital appreciation through exposure to the AI and Deep Learning sector

Issuer:

• TrueShares Capital Management LLC is a thematic ETF provider with a focus on emerging technologies. They have a strong track record in launching and managing niche ETFs.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in technology and quantitative analysis.

Market Share:

• LRNZ holds a market share of approximately 0.3% in the AI and Machine Learning ETF space.

Total Net Assets:

• As of October 26, 2023, LRNZ has total net assets of approximately $18.5 million.

Moat:

• Active Management: LRNZ's active management approach allows for flexibility in selecting companies and potentially outperforming the benchmark index.
• Niche Focus: The ETF's focus on the rapidly growing AI and Deep Learning sector provides access to a specific and potentially high-growth area of the technology market.

Financial Performance:

• Since its inception in December 2021, LRNZ has generated a total return of 16.5%.
• It has outperformed the Solactive Artificial Intelligence & Deep Learning Index by 3.2% during the same period.

Growth Trajectory:

• The AI and Deep Learning market is expected to see significant growth in the coming years, driven by increasing adoption of AI technologies across various industries.
• LRNZ is well-positioned to benefit from this growth trajectory.

Liquidity:

• Average Daily Trading Volume: Approximately 15,000 shares
• Bid-Ask Spread: Around 0.2%

Market Dynamics:

• Factors affecting LRNZ's market environment include:
  • Technological advancements in AI and Deep Learning
  • Adoption of AI by businesses
  • Regulatory environment for AI
  • Overall market sentiment towards technology stocks

Competitors:

• ARK Innovation ETF (ARKK): Market share of 25.5%
• Global X Robotics & Artificial Intelligence ETF (BOTZ): Market share of 15.1%
• iShares Robotics and Artificial Intelligence ETF (IRBO): Market share of 10.2%

Expense Ratio:

• 0.75%

Investment Approach and Strategy:

• LRNZ utilizes a quantitative model to select companies based on their involvement in AI and Deep Learning activities.
• It invests in a concentrated portfolio of approximately 50 stocks.

Key Points:

• Provides exposure to a high-growth technology sector.
• Actively managed with the potential to outperform the benchmark index.
• Faces competition from larger and more established ETFs.

Risks:

• Volatility: The AI and Deep Learning sector is known for its volatility.
• Market Risk: LRNZ's performance is tied to the performance of the underlying technology stocks.
• Concentration Risk: The ETF's concentrated portfolio could expose investors to higher volatility and company-specific risks.

Who Should Consider Investing:

• Investors who believe in the long-term growth potential of the AI and Deep Learning sector.
• Investors comfortable with a higher level of volatility.
• Investors seeking exposure to a niche technology area.

Fundamental Rating Based on AI: 7.5

LRNZ receives a strong rating based on its active management approach, niche focus, and potential for growth. However, the ETF's relatively small size, limited track record, and higher expense ratio compared to some competitors are drawbacks to consider.

Resources:

• https://www.etf.com/etf/LRNZ
• https://www.trueshares.com/etfs/lrnz/
• https://finance.yahoo.com/quote/LRNZ/

Disclaimer:

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