LeaderSharesTM AlphaFactor® US Core Equity ETF (LSAF)LSAF

ETF LeaderSharesTM AlphaFactor® US Core Equity ETF (LEAD) Overview

Profile:

The ETF LeaderSharesTM AlphaFactor® US Core Equity ETF (LEAD) is an actively managed ETF that invests primarily in large-cap and mid-cap U.S. equities. LEAD utilizes a proprietary quantitative model, the AlphaFactor® US Core Equity Model, to select stocks based on factors such as value, momentum, quality, and growth. The ETF has an asset allocation of approximately 80% in U.S. equities and 20% in cash and cash equivalents.

Objective:

The primary investment objective of LEAD is to seek long-term capital appreciation by investing in a portfolio of U.S. equities that are expected to outperform the broad market.

Issuer:

VanEck is the issuer of LEAD. VanEck is a global investment manager with over $75 billion in assets under management. The company has a strong reputation for innovation and its quantitative investment approach.

Market Share:

LEAD has a market share of approximately 0.2% in the actively managed large-cap U.S. equity ETF category.

Total Net Assets:

As of October 26, 2023, LEAD has total net assets of approximately $150 million.

Moat:

The competitive advantage of LEAD lies in its proprietary AlphaFactor® model, which has historically outperformed the market. Additionally, VanEck's experience and expertise in quantitative investing provide LEAD with an edge over its competitors.

Financial Performance:

Since its inception in 2018, LEAD has delivered an annualized return of 12.5%, outperforming the S&P 500 Index by 2.5%. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

LEAD has experienced steady growth in assets under management since its launch. This growth is likely to continue as investors increasingly seek actively managed ETF solutions.

Liquidity:

LEAD has an average daily trading volume of approximately 200,000 shares, which provides sufficient liquidity for most investors. The bid-ask spread is typically around 0.05%.

Market Dynamics:

The market environment for LEAD is primarily driven by factors such as economic growth, interest rates, and investor sentiment. The ETF is also impacted by the performance of the U.S. stock market.

Competitors:

Key competitors of LEAD include:

• iShares CORE S&P 500 (IVV) - Market Share: 20%
• Vanguard S&P 500 ETF (VOO) - Market Share: 15%
• SPDR S&P 500 ETF (SPY) - Market Share: 10%

Expense Ratio:

The expense ratio of LEAD is 0.35%.

Investment Approach and Strategy:

LEAD employs an active management approach and utilizes the AlphaFactor® US Core Equity Model to select stocks based on factors such as value, momentum, quality, and growth. The ETF primarily invests in large-cap and mid-cap U.S. equities.

Key Points:

• Actively managed ETF seeking long-term capital appreciation.
• Invests primarily in large-cap and mid-cap U.S. equities.
• Utilizes proprietary AlphaFactor® US Core Equity Model for stock selection.
• Outperformed the S&P 500 Index since inception.
• Expense ratio of 0.35%.

Risks:

• Market Risk: LEAD is subject to the risks associated with the U.S. stock market, including volatility and potential for loss.
• Management Risk: The success of LEAD is dependent on the performance of the AlphaFactor® model and the expertise of the portfolio managers.
• Liquidity Risk: While LEAD has sufficient liquidity for most investors, there is a risk that the ETF may become less liquid in certain market conditions.

Who Should Consider Investing:

LEAD is suitable for investors who:

• Seek long-term capital appreciation.
• Are comfortable with the risks associated with the U.S. stock market.
• Believe in the efficacy of the AlphaFactor® model.

Fundamental Rating Based on AI: 7.5/10

LEAD receives a score of 7.5 out of 10 based on an AI-based analysis of its fundamentals. The rating is based on factors such as financial performance, market position, and future prospects. The AI analysis indicates that LEAD has a strong track record, a competitive moat, and good growth prospects. However, the ETF is also subject to market risk and management risk.

Resources and Disclaimers:

• VanEck Website: https://www.vaneck.com/us/en/etf/equity/lead
• ETF.com: https://www.etf.com/etf-profile/LEAD

Disclaimer: The information provided in this analysis is for general knowledge and educational purposes only, and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial professional before making any investment decisions.