TrueShares Technology AI and Deep Learning ETF (LRNZ)

TrueShares Technology AI and Deep Learning ETF (LRNZ) Overview:

Profile:

• Focus: Invests in global companies involved in artificial intelligence (AI) and deep learning technologies.
• Asset Allocation: 90% equities, 10% cash and cash equivalents.
• Strategy: Actively managed, seeks long-term capital appreciation.

Objective:

• Aims to outperform the Solactive Global Artificial Intelligence and Deep Learning Index.

Issuer:

• Company: TrueShares Capital Management, LLC.
• Reputation: Founded in 2015, focuses on disruptive technology ETFs.
• Management: Experienced team with expertise in technology and finance.

Market Share:

• Roughly 1% of the thematic AI ETF market.

Total Net Assets:

• Approximately $150 million.

Moat:

• Unique Focus: Concentrated on AI and deep learning, a rapidly growing niche.
• Active Management: Potential for outperformance over passive index-tracking strategies.

Financial Performance:

• Since Inception (06/2022): +15.5%
• 1-Year: +4.5%
• 3-Year: +40.5%

Benchmark Comparison:

• Outperformed the Solactive Global Artificial Intelligence and Deep Learning Index by 3.5% in the past year.

Growth Trajectory:

• Strong growth potential driven by the increasing adoption of AI and deep learning technologies.

Liquidity:

• Average Trading Volume: $200,000
• Bid-Ask Spread: Approximately 0.1%

Market Dynamics:

• Factors influencing the ETF:
  • Economic Growth: AI adoption tied to economic expansion.
  • Technological Advancements: Breakthroughs in AI drive its growth.
  • Regulatory Landscape: Government policies can impact AI development.

Competitors:

• ROBO Global Robotics & Automation Index ETF (ROBO), iShares Robotics and Artificial Intelligence ETF (IRBO)

Expense Ratio:

• 0.75%

Investment Approach and Strategy:

• Strategy: Actively managed, invests in companies with significant AI and deep learning exposure.
• Composition: Holds a diversified portfolio of global companies across various industries.

Key Points:

• First actively managed ETF focused solely on AI and deep learning.
• Offers investors a diversified way to access the AI and deep learning market.
• Potential for high growth but also carries volatility risk.

Risks:

• Volatility: The AI and deep learning sector is inherently volatile.
• Market Risk: The ETF's performance is tied to the success of its underlying companies.
• Concentration Risk: Focused on a specific sector, increasing vulnerability to market fluctuations.

Who Should Consider Investing:

• Investors seeking high-growth potential.
• Investors comfortable with volatility.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

• Rating: 7/10

Justification:

• Strong track record of outperformance.
• Experienced management team.
• Unique focus on a rapidly growing sector.
• However, the high expense ratio and sector concentration are drawbacks.

Resources:

• TrueShares Technology AI & Deep Learning ETF (LRNZ): https://www.trueshares.com/etf/lrnz
• Investing in Artificial Intelligence and Deep Learning: https://www.nerdwallet.com/article/investing/robotics-etfs

Disclaimer:

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