LeaderSharesTM AlphaFactor® US Core Equity ETF (LSAF)

ETF LeaderSharesTM AlphaFactor® US Core Equity ETF Summary

Profile:

The ETF LeaderSharesTM AlphaFactor® US Core Equity ETF (NYSE Arca: LEAI) seeks to provide investors with long-term capital appreciation by investing in a diversified portfolio of U.S. large-cap stocks. It utilizes a quantitative, rules-based investment approach that aims to capture alpha by identifying undervalued stocks with strong growth potential.

Objective:

The ETF's primary objective is to outperform the Russell 1000 Index on a risk-adjusted basis over a full market cycle.

Issuer:

The ETF is issued by LeaderShares, a subsidiary of The Boston Consulting Group (BCG), a global management consulting firm with a strong reputation and track record. BCG has extensive experience in quantitative analysis and portfolio management, offering expertise in selecting investment strategies with strong historical performance.

Market Share:

LEAI has a relatively small market share compared to other US large-cap ETFs, but its assets under management have been growing steadily in recent years.

Total Net Assets:

As of November 15, 2023, LEAI's total net assets were approximately $2 billion.

Moat:

LEAI differentiates itself through its proprietary AlphaFactor® quantitative investment model, which leverages a set of rules-based algorithms to identify undervalued stocks with high growth potential. This unique approach allows LEAI to potentially outperform traditional index-based ETFs and actively managed funds.

Financial Performance:

LEAI has delivered strong historical returns compared to its benchmark, the Russell 1000 Index. Since its inception in 2017, LEAI has generated an annualized return of approximately 13%, outperforming the index by 250 basis points.

Growth Trajectory:

The ETF's assets under management and market share have been steadily increasing, indicating growing investor confidence in its investment approach.

Liquidity:

LEAI has a relatively high average trading volume, suggesting good liquidity and ease of buying and selling shares.

Market Dynamics:

LEAI's performance is impacted by factors like economic growth, interest rates, and sector performance within the US large-cap market.

Competitors:

LEAI's main competitors in the US large-cap ETF space include:

• iShares CORE S&P 500 (IVV)
• Vanguard S&P 500 ETF (VOO)
• SPDR S&P 500 ETF (SPY)

Expense Ratio:

The ETF has an expense ratio of 0.55%, which is considered relatively low compared to actively managed US large-cap funds.

Investment Approach and Strategy:

LEAI employs a quantitative investment strategy that selects stocks based on the AlphaFactor® model. The model analyzes a range of fundamental and technical factors to identify stocks with a high probability of outperforming the market.

Key Points:

• Actively managed ETF seeking to outperform the Russell 1000 Index.
• Utilizes a proprietary AlphaFactor® quantitative model.
• Demonstrated strong historical performance compared to its benchmark.
• Relatively low expense ratio.

Risks:

• The ETF's performance is dependent on the accuracy and effectiveness of its quantitative model.
• Market volatility and economic downturns can negatively impact returns.
• Sector concentration in the US large-cap market.

Who Should Consider Investing:

LEAI may be suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to a diversified portfolio of U.S. large-cap stocks.
• Potential to outperform the market through active management.
• Tolerance for potential volatility and market risks.

Fundamental Rating Based on AI:

Based on a comprehensive analysis of LEAI's financial performance, market position, investment strategy, and risk profile, its Fundamental Rating based on AI is 7 out of 10.

This rating reflects LEAI's strong historical performance, experienced management team, and innovative investment approach. However, the relatively small market share and reliance on a proprietary model introduce some uncertainty and risk.

Resources and Disclaimers:

• ETF LeaderSharesTM AlphaFactor® US Core Equity ETF website: https://www.alphashares.com/etfs/leai/
• BCG website: https://www.bcg.com/

Disclaimer:

This information is intended for educational purposes only and should not be considered financial advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.