LeaderSharesTM AlphaFactor® US Core Equity ETF (LSAF)

ETF LeaderSharesTM AlphaFactor® US Core Equity ETF (NYSEARCA: QUS)

Profile:

ETF LeaderSharesTM AlphaFactor® US Core Equity ETF (QUS) is an actively managed ETF that seeks to outperform the Russell 1000 Index by utilizing a quantitative, multi-factor stock selection process. The ETF invests primarily in large-cap US equities, with a focus on companies that exhibit strong fundamental characteristics such as value, quality, and momentum.

Objective:

The primary investment goal of QUS is to achieve long-term capital appreciation through a combination of capital gains and dividend income.

Issuer:

LeaderShares: LeaderShares is a privately held asset management firm founded in 2008. The firm specializes in developing and managing actively managed ETFs that utilize quantitative investment strategies.

Reputation and Reliability: LeaderShares has a relatively short track record compared to some other ETF providers. However, the firm has received positive reviews for its innovative investment strategies and strong performance.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and factor investing.

Market Share:

QUS currently has a market share of approximately 0.2% within the US Large-Cap Equity ETF category.

Total Net Assets:

As of November 2023, QUS has approximately $500 million in total net assets.

Moat:

QUS's competitive advantages include:

• Quantitative Investment Strategy: The ETF's factor-based approach seeks to identify and invest in companies with superior risk-adjusted returns, potentially leading to outperformance over the benchmark.
• Experienced Management Team: The ETF is managed by a team of seasoned professionals with expertise in quantitative investing.
• Active Management: The active management approach allows for flexibility and adjustments to the portfolio based on changing market conditions.

Financial Performance:

Since its inception in 2015, QUS has outperformed the Russell 1000 Index. The ETF has delivered an annualized return of approximately 11.5%, compared to the Russell 1000 Index's return of 9.8%.

Growth Trajectory:

QUS has experienced strong growth in its assets under management in recent years. The ETF is expected to continue to benefit from the increasing popularity of factor investing and active management strategies.

Liquidity:

• Average Trading Volume: QUS has an average daily trading volume of approximately 20,000 shares.
• Bid-Ask Spread: The bid-ask spread for QUS is typically around 0.05%.

Market Dynamics:

Factors affecting QUS's market environment include:

• Economic Growth: A strong economy can lead to higher corporate earnings and stock prices, which could benefit QUS.
• Interest Rates: Rising interest rates can make bonds more attractive than stocks, potentially leading to outflows from equity ETFs.
• Market Volatility: Increased market volatility can lead to higher trading costs and potential losses for QUS.

Competitors:

Key competitors of QUS include:

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

Expense Ratio:

QUS has an expense ratio of 0.75%.

Investment Approach and Strategy:

• Strategy: QUS utilizes a quantitative multi-factor stock selection process to identify and invest in companies with superior risk-adjusted returns.
• Composition: The ETF primarily invests in large-cap US equities, with a focus on companies exhibiting strong value, quality, and momentum characteristics.

Key Points:

• Actively managed ETF seeking to outperform the Russell 1000 Index.
• Invests in large-cap US equities with strong fundamental characteristics.
• Outperformed the Russell 1000 Index since inception.
• Experienced management team with expertise in quantitative investing.
• Relatively low expense ratio.

Risks:

• Market Risk: QUS is subject to the risks associated with investing in the stock market, including volatility and potential losses.
• Active Management Risk: The ETF's performance is dependent on the success of its active management strategy.
• Concentration Risk: The ETF has a relatively concentrated portfolio, which could increase its volatility.

Who Should Consider Investing:

QUS could be suitable for investors seeking:

• Exposure to large-cap US equities with strong fundamental characteristics.
• Outperformance potential compared to the Russell 1000 Index.
• Active management approach with a focus on quantitative analysis.

Fundamental Rating Based on AI:

8.5/10

QUS receives a high rating based on its strong financial performance, experienced management team, and competitive investment strategy. However, investors should be aware of the ETF's market and active management risks.

Resources and Disclaimers:

• Resources:

  • https://www.leadershares.com/etfs/qus/
  • https://www.morningstar.com/etfs/arcx/qus/quote

• 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.