Two Roads Shared Trust - LeaderShares AlphaFactor Tactical Focused ETF (LSAT)

ETF Two Roads Shared Trust - LeaderShares AlphaFactor Tactical Focused ETF: A Comprehensive Overview

Profile:

The ETF Two Roads Shared Trust - LeaderShares AlphaFactor Tactical Focused ETF (LSRF) is an actively managed ETF that seeks to generate long-term capital appreciation through a combination of tactical asset allocation and factor investing. LSRF focuses on a diversified portfolio of US and international equities across various sectors and market capitalizations. The ETF employs a quantitative model, the AlphaFactor Tactical Focused Model, to identify and invest in stocks with a high probability of outperforming the market.

Objective:

The primary investment goal of LSRF is to achieve superior risk-adjusted returns through active management and factor-based investing.

Issuer:

The ETF is issued by Two Roads Shared Trust, a subsidiary of Two Roads Asset Management, an independent investment management firm with over $15 billion in assets under management.

Market Share:

LSRF currently holds a market share of approximately 0.03% in the actively managed equity ETF category.

Total Net Assets:

As of November 7, 2023, the total net assets of LSRF stand at approximately $32 million.

Moat:

LSRF's competitive advantage lies in its unique combination of

• Active Management: The ETF utilizes a proprietary quantitative model to identify potential alpha-generating opportunities.
• Factor Investing: LSRF focuses on factors with a proven track record of outperformance, such as value, momentum, and quality.
• Experienced Management Team: Two Roads Asset Management has a team of experienced portfolio managers with expertise in quantitative modeling and factor investing.

Financial Performance:

Since its inception in April 2021, LSRF has delivered a total return of 4.54% (as of November 7, 2023). This compares favorably to its benchmark, the S&P 500 Index, which has returned 2.12% over the same period.

Growth Trajectory:

LSRF is a relatively new ETF with a limited track record. However, its active management approach and focus on factor investing suggest potential for future growth.

Liquidity:

LSRF has an average daily trading volume of approximately 2,000 shares. The bid-ask spread is relatively narrow, indicating reasonable liquidity.

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Economic Conditions: LSRF's performance can be affected by economic factors such as interest rates, inflation, and economic growth.
• Market Volatility: The ETF is exposed to market volatility, which can impact its short-term performance.
• Sector Performance: LSRF's performance is dependent on the performance of the underlying sectors it invests in.

Competitors:

Key competitors include:

• iShares Edge MSCI USA Momentum Factor ETF (MTUM) - Market Share: 0.35%
• Invesco S&P 500 High Beta ETF (SPHB) - Market Share: 0.28%
• Vanguard Value ETF (VTV) - Market Share: 0.21%

Expense Ratio:

The expense ratio of LSRF is 0.85%.

Investment Approach and Strategy:

• Strategy: LSRF employs a quantitative model to select stocks with a high probability of outperforming the market based on factors such as value, momentum, and quality.
• Composition: The ETF invests primarily in US and international equities across various sectors and market capitalizations.

Key Points:

• Actively managed ETF with a focus on factor investing.
• Potential for superior risk-adjusted returns.
• Experienced management team with expertise in quantitative modeling.
• Relatively new ETF with a limited track record.
• Moderate liquidity.

Risks:

• Market Risk: LSRF is exposed to market risk, which can impact its short-term performance.
• Factor Investing Risk: The ETF's reliance on factor investing strategies may not always generate positive results.
• Active Management Risk: LSRF's performance depends on the success of its active management approach.

Who Should Consider Investing:

LSRF is suitable for investors seeking long-term capital appreciation through a combination of active management and factor investing. Investors should have a moderate to high risk tolerance and an understanding of factor investing strategies.

Fundamental Rating Based on AI:

Based on an AI-based analysis, LSRF receives a 6 out of 10 rating. The AI model considers factors such as financial health, market position, and future prospects. The rating suggests that LSRF has potential for future growth but is also subject to market and factor investing risks.

Resources and Disclaimers:

• Two Roads Asset Management Website: https://www.tworoadsassetmanagement.com/
• ETF.com: https://www.etf.com/etf-profile/TLT
• Morningstar: https://www.morningstar.com/etfs/arcx/lsrf/quote

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.