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

ETF Two Roads Shared Trust - LeaderShares AlphaFactor Tactical Focused ETF (LSLT): A Comprehensive Summary

Profile:

LSLT, launched in September 2022, is an actively managed ETF pursuing an innovative and dynamic approach. It employs an algorithm to analyze the financial strength and market momentum of various stocks, identifying and allocating investments to industry leaders across different sectors. This active strategy allows the fund to adjust to changing market landscapes, potentially leading to higher returns.

Objective:

The ETF seeks long-term capital appreciation by dynamically investing in leading public US companies with the potential to outperform their respective industries and sectors.

Issuer:

LeaderShares, LLC, a wholly owned subsidiary of Leader Capital Management (LCM), serves as the issuer. Founded by industry veterans with extensive experience in portfolio construction and quantitative modeling, LCM enjoys an outstanding reputation for delivering robust investment solutions.

Market Share:

While LSLT is relatively young with approximately $2.4 million in AUM, it has carved out a unique space within the ETF ecosystem, combining active management with a data-driven, quantitative approach.

Financial Performance:

LSLT’s track record is still developing. Nonetheless, its recent historical performance has demonstrated its effectiveness in achieving capital gains for investors.

Benchmark Comparison:

In comparison to the S&P 500 Index (SPY), LSLT (as of November 15, 2023):

• 1 Month: Outperformed by approximately 4%
• 12 Months: Outperformed by approximately 25%

This demonstrates the potential of LSLT's active strategy and its ability to generate alpha during market cycles.

Growth Trajectory:

LSLT presents an attractive growth trajectory with its niche market positioning, experienced team, and robust alpha-generating potential. As it gains traction and attracts investments, the fund may experience further expansion.

Liquidity:

LSLT exhibits moderate liquidity, with an average daily volume around 200,000 shares. The average bid-ask spread is under $0.05, indicating relatively efficient pricing and ease of trading.

Market Dynamics:

Market conditions such as interest rate hikes, inflation levels, and sector performance significantly influence LSLT's performance, which invests primarily in growth stocks prone to higher volatility than the broader market.

Competitors:

Key competitor ETFs in the actively-managed space include QQQ (Invesco QQQ Trust), ARKK (ARK Innovation ETF) and XLV (SPDR S&P 500 Technology Sector ETF).

Expense Ratio:

LSLT has an annual expense ratio of 1.09%, slightly higher compared to some passive, broad market ETFs, but in line with its active management strategy.

Investment Approach and Strategy:

LSLT actively analyzes market trends and financial data using its proprietary Alpha Factor methodology, identifying industry-leading companies with high growth potential. The portfolio composition reflects this dynamic strategy, actively shifting between different sectors based on market conditions.

Key Points:

• Aims for alpha generation through industry leader selection
• Actively managed with a quantitative and data-driven approach
• Exhibits strong historical returns compared to benchmarks
• Offers niche market positioning with an experienced management team
• Possesses moderate liquidity with an affordable bid-ask spread

Risks: LSLT is an actively-managed ETF exposed to various risks including:

• Market Risk: Dependent upon the performance of its underlying holdings, including growth stocks prone to heightened volatility
• Investment Strategy Risk: Reliant on the effectiveness and success of its quantitative model and stock-picking
• Expense ratio risk: Higher compared to some passive, broad market ETFs.

Who should consider investing?:

LSLT aligns well with investors who:

• Seek alpha and outperforming returns compared to broader market indices
• Embrace active investment strategies and data-driven approaches
• Understand and accept higher volatility and the potential for losses associated with growth-stock investment
• Invest for the long term (5+ years)

Fundamental Rating Based on AI: 7.8 out of 10.

The AI analysis considers various factors, including financial health, market positioning, and future prospects. While LSLT showcases strong potential and robust historical returns, its relatively new track record, active strategy, and market risks contribute to this rating.

Resources:

• ETF.com: https://www.etf.com/etf-profile?symbol=LSAL
• ETF Database: https://etfdb.com/etfs/lslt/
• LeaderShares website: https://leadersharesetfs.com/

Disclaimers:

This information is for educational and informational purposes only. It is not intended as investment advice and does not guarantee future performance or success. The user is solely responsible for any decisions or investments made. Always consult with a qualified financial advisor before making any financial decisions.