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

Overview

The LeaderShares AlphaFactor Tactical Focused ETF (LSAF) seeks long-term capital appreciation by investing primarily in US equity securities selected using a quantitative model. The fund employs a tactical asset allocation strategy to adjust its exposure to different sectors based on market conditions.

Reputation and Reliability

LeaderShares is a smaller ETF provider known for its quantitative and factor-based strategies. Their reputation is generally positive within the specialized segment of factor-based ETFs.

Management Expertise

The management team possesses expertise in quantitative analysis, portfolio management, and tactical asset allocation.

Goal

The primary investment goal of LSAF is to achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: LSAF does not track a specific index. Its strategy involves actively selecting stocks based on a proprietary quantitative model and tactically adjusting sector allocations based on market conditions.

Composition The ETF primarily holds US equity securities across various market capitalizations and sectors. The composition changes over time based on the model's signals.

Market Share: Data on LSAF's precise market share is limited due to its specific tactical focused strategy and small AUM.

Total Net Assets (AUM): 13929852

Key Competitors

• Invesco DWA Tactical Sector Rotation ETF (DWTR)
• FlexShares Quality Dividend Defensive Index Fund (QDEF)
• AGFiQ US Market Neutral Anti-Beta Fund (BTAL)

Competitive Landscape

The competitive landscape is moderately competitive, with a range of tactical and factor-based ETFs available. LSAF's advantages might include its specific quantitative model, but it faces challenges due to its smaller size and AUM compared to larger competitors like DWTR.

Historical Performance: Historical performance data needs to be gathered from financial data providers to assess performance over various time periods. Performance history is available, but must be gathered externally and cannot be included in this response.

Benchmark Comparison: A suitable benchmark for comparison would be a broad market index like the S&P 500, along with tactical allocation or factor-based ETF benchmarks, to evaluate LSAF's value added above basic market returns.

Expense Ratio: 0.79

Average Trading Volume

LSAF's average trading volume is generally low, which can impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread for LSAF can be relatively wide, reflecting the lower trading volume and potentially increasing transaction costs.

Market Environment Factors

Economic growth, interest rate movements, sector rotation trends, and overall market volatility can all affect LSAF's performance, influencing both its stock selection and sector allocation.

Growth Trajectory

LSAF's growth trajectory is dependent on its ability to generate positive returns relative to its benchmark, attract investor interest, and maintain a competitive expense ratio. Its tactical allocation strategy can lead to fluctuating asset levels.

Competitive Edge

LSAF's competitive edge lies in its proprietary quantitative model for stock selection and tactical sector rotation, aiming to capitalize on market inefficiencies. This strategy is designed to adapt to changing market conditions, potentially offering alpha generation. A potential drawback may be the costs and model risks inherent in such active strategies. A robust risk management framework is essential for effective implementation.

Volatility

LSAF's volatility is likely to be moderate to high due to its active management strategy and sector rotation. Volatility data would need to be externally gathered for accurate assessment.

Market Risk

LSAF is subject to market risk, including the risk of declines in the overall stock market. Sector-specific risks are also present as a result of its tactical allocation strategy.

Ideal Investor Profile

The ideal investor for LSAF is one who seeks long-term capital appreciation and is comfortable with active management, sector rotation, and the potential for higher volatility.

Market Risk

LSAF may be suitable for long-term investors with a higher risk tolerance who seek alpha generation through tactical asset allocation. It is less suitable for passive index followers due to its active management.

The LeaderShares AlphaFactor Tactical Focused ETF (LSAF) aims for capital appreciation through a quantitative model and tactical sector rotation strategy, with a focus on U.S. equities. While the ETF can potentially outperform market benchmarks through dynamic adjustments, its performance depends on the model's efficacy and market conditions. Its smaller size and tactical approach present both opportunities and risks for investors who can tolerate higher volatility. As a result, investors should carefully consider the fund's strategy and risk profile before investing.

Data Sources:

• ETF.com
• Morningstar.com
• Leadershares.com

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Data sources believed to be reliable, but accuracy cannot be guaranteed.